The time value of money is explicitly considered in Net present value (NPV) capital budgeting methods.
The process of deciding whether to invest in capital assets is known as capital budgeting. Companies can more efficiently assess and prioritize which projects, programs, and other investment assets could be the most financially advantageous in the long-term by integrating strategically planned capital budgeting into their financial processes. Internal Rate of Return, Net Present Value, Profitability Index, Accounting Rate of Return, and Payback Period are the five capital budgeting methodologies.
An investment opportunity's whole value is intended to be captured by the financial term known as Net Present Value (NPV). The goal of NPV is to forecast all potential future cash inflows and outflows related to an investment, discount each one to the present, and then tally them all up.
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Answer:
d. Sarbanes-Oxley Act
Explanation:
According to my research on various IRS laws, I can say that based on the information provided within the question the law/act being mentioned in the question is called the Sarbanes-Oxley Act. This Act is basically a federal law established in 2002 allowing for sweeping auditing and financial regulations for public companies. This was created in order to protect shareholders, employees and the public from accounting errors and fraudulent financial practices, such as money laundering.
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Answer:
$26,730
Explanation:
The explanation for this question is given in the attachment below.
Generally the preferred method of making decisions within an organization is the rational model. This model is the preferred method for making decisions but generally it is pretty unrealistic for a company to obtain and adapt into their organization. This model tries to combine rational with structured deicsion aking for the best possible outcome.
Answer:
$9,000
Explanation:
As Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment, Gaw company will receive the 15% portion of the dividend paid by Trace company in 2018 irrespective of what net income Trace reported in 2018.
Therefore, Gaw company should recognize 15% of $60,000 = $60,000 × 0.15 = $9,000 income on this investment in 2018.
