Answer:
does not need a required rate to calculate
is the rate at which npv is zero
Explanation:
Internal rate of return is an example of capital budgeting method
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested.
Projects with the IRR greater than the discount rate should be accepted. It means that it is profitable.
Projects with more than one negative cash flow are unsuitable for calculating with IRR. This is because it can lead to multiple IRR, Thus, it not suitable for analysing all investment scenarios.
The net present value is the most preferred capital budgeting method
Other capital budgeting methods includes
1. profitability index = 1 + (NPV / Initial investment)
2. Accounting rate of return = Average net income / Average book value
3. Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows
4. Net present value is the present value of after-tax cash flows from an investment less the amount invested.
Answer:The meeting will fall under the FOURTH PHASEie STRATEGIC EVALUATATION of the planning process
Explanation:
The fourth phase of planning is the Strategy Evaluation which involves Buisness taking a concise time to monitor an already working proposed plan and adjust the process as nessesary.
Buisnesses like P and L can address an already working procedure to analyse what is working or what is not by organisaing, monitoring , getting feedback and measuring performance of the work done by the earlier proposed plan. This on the long run leads to establishment of best practices and help to correct future processes and plans.
Answer:
$113,000
Explanation:
As we know ,
Working capital = Total current assets - total current liabilities
where,
Total current assets = Accounts receivable + cash + inventory + marketable securities + prepaid expenses
= $35,000 + $25,000 + $72,000 + $36,000 + $2,000
= $170,000
And, the total current liabilities = Accounts payable + accrued liabilities + short term notes payable
= $30,000 + $7,000 + $20,000
= $57,000
Now put the values to the above formula
So, the value would be equal to
= $170,000 - $57,000
= $113,000
Answer: Option (b) is correct.
Explanation:
Correct Option: Licenses
In United States, there is a licensing system which prohibits the number of taxicabs allowed. So, there are less number of taxicabs companies operates in most of the united states cities.
There is a advantage for the taxicabs companies for using the monopoly power.
Whereas, some of the cities of U.S use 'taxi medallions" as the permits for picking up the passengers.
Answer:
The correct answer is option d.
Explanation:
The most effective model to understand the effect of change of a variable on other variable is by assuming other factors to be constant. This simplifies the model and helps in easily understanding the relationship between the two variables.
Though the assumption of other things being constant does not apply in the real world, it is still used as otherwise change in other factors would complicate the model. If several factors change it would be difficult to understand the relationship between variables.
Here, to study the effect of change in the price of grapes on the market for wine, it is necessary to assume other factors such as income, consumer preferences, etc to be constant.
