All categories

2 years ago

The investment analysis method that uses the hurdle rate as a benchmark to accept or reject the proposal is the ______ method.

Business

1 answer:

quester [9]2 years ago

7 0

The correct answer is internal rate of return for investment analysis.

The Internal Rate of Return (IRR), a statistic used in financial analysis, is used to determine the profitability of potential investments. IRR is a rate of return that drives the net present values (NPV) of all cash flows to zero in a discounted cash flow analysis.

Keep in mind that the IRR does not accurately reflect the development's true financial value. The NPV becomes negative due to the annual return.

The internal rate of return is the anticipated yearly acceleration from an investment (IRR).

The ultimate goal of IRR is to calculate the rate of discount that reduces the investment's initial cash balance outlay to the purchase price of all of its original nominal yearly profits.

The greatest tool for analyzing corporate finance projects so order to evaluate and compare likely yearly rates of return across time is the internal rate of return (IRR).

IRR can help investors determine the investment return of different assets and is also used by businesses to decide which infrastructure improvements to invest in.

Learn more about Internal Rate of Return here:

brainly.com/question/13373396

#SPJ4

You might be interested in

According to Levitt, which of the following statements is true? A. Technology drives the world toward a converging commonalty B.

trapecia [35]

Answer:

the correct option is A) According to Levitt, Technology drives the world toward a converging commonalty.

Explanation:

Levitt's Thesis states that "a dominant force drives the world towards a converging commonality, allowing international businesses to become global by standardizing their product and service offering".

One of the main forces he identified was technology.

It has become very evident that Technology is an essential force that drives the modern form of business globalization because technology has helped overcome major barriers to trade in the international scene by introducing standardized processes and global quality assurance.

It has also eliminated delays in information exchange, created a virtual market and ease of interaction between countries making international business processes cost effective and efficient.

8 0

3 years ago

At the beginning of 2020, Pronghorn Company acquired a mine for $1,732,800. Of this amount, $112,000 was ascribed to the land va

scoundrel [369]

Answer: a. $434880

b. $369,600

Explanation:

a. Compute the total amount of depletion for 2020.

Depletion Rate can be calculated as:

= (Mine cost - Value of land + Obligation + Development cost)/Ore extracted

= ($1,732,800 - $112,000 + $44,800 + $190,400)/$11,600,000

= $1856000/$11600000

= 0.16

Total amount of depletion for 2020 will now be calculated as:

= Depletion Rate × Ore extracted

= 0.16 × 2,718,000

= $434880

b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.

This will be calculated as the totsl depletion for 2014 divided by the value of the amount of ore that was extracted multiplied with amount of unit sold. This will be:

= (434,880/2,718,000) × 2,310,000

= 0.16 × 2,310,000

= $369,600

5 0

3 years ago

Jordan gets confused and uses his credit card to get $40 in cash from an ATM instead of using his debit card. Based on this agre

Fofino [41]

The impact of Jordan making this mistake is an extra Credit charges that will be impose on the Cash withdrawn.

Simply put, a Credit Card are offered to people by banks for purpose of making purchases or cash advances and requires them to pay back the loan amount in the future.

However, a Debit Card is quite different because it is issued by banks to an account-holder or facilitate easy withdrawal from his/her account through the ATM or at any Point of Sales.

Now, Jordan can use his Credit Card as well but he will be required to pay back the amount he withdrew with an extra Credit charges.

Therefore, in conclusion, the impact of Jordan making this mistake is an extra Credit charges that will be impose on the Cash withdrawn.