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qwelly [4]
1 year ago
14

you were recently hired by a firm as a project analyst. the owner of the firm is unfamiliar with financial analysis and wants to

know only what the expected dollar return is per dollar spent on a given project. which financial method of analysis will provide the information that the owner requests? multiple choice modified internal rate of return payback profitability index internal rate of return net present value
Business
1 answer:
NISA [10]1 year ago
4 0

<u>Profitability index</u> can be handy for a project analyst if the owner of a business doesn't understand financial analysis and only needs to know the expected dollar return per dollar invested on a specific project. Thus, the answer is the third option which is "profitability index".

Profitability index is also known as the "benefit-cost ratio" and the best financial method of analysis that can provide information to the owner's requests. It can be solved by Present Value of Cash Inflows divided by the Present Value of Cash Outflows. If the Profitability Index is greater than 1 then it means the project is good and definitely worth accepting.

Modified IRR or Modified Internal Rate of Return, Payback, IRR or Internal Rate of Return and NPV or Net Present Value can be too complex for the owner of the firm who is unfamiliar with financial analysis.

Learn more about the three of the most common tools of financial analysis: brainly.com/question/14234253

#SPJ4

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Select the best answer for the question.
irina [24]

Answer:

94 V

Explanation:

Here we don't have the figure showing the circuit and how the resistors are connected: therefore, we have to make some assumptions.

Here we will assume that the three resistors are connected in series: this means that they are connected along the same branch, and therefore, the current flowing through them is the same.

As a result, the total voltage drop across some resistors in series is given by the sum of the voltage drops on each resistor.

Therefore, for three resistors in series

V=V_1+V_2+V_3

Where here we have:

V_1 = 56 V is the voltage drop on the 1st resistor

V_2=35 V is the voltage drop on the 2nd resistor

V_3=3 V is the voltage drop on the 3rd resistor

Substituting into the equation, we find:

V=56+35+3=94 V

7 0
3 years ago
The common stock of Buildwell Conservation &amp; Construction Inc. (BCCI) has a beta of .9. The Treasury bill rate is 4%, and th
UkoKoshka [18]

Answer:

Cost of equity is 11.2%

WACC is 8.74%

Explanation:

The formula for cost of equity is given below:

Cost of equity=risk free rate+(Beta *risk premium)

risk free rate is the treasury bill rate of 4%

Beta is 0.9

market risk premium is 8%

cost of equity=4%+(0.9*8%)=11.2%

WACC=Ke*E/V+Kd*D/V*(1-t)

Ke is the cost of equity of 11.2%

Kd is the cost of debt of 5%

t is the tax rate of 40% or 0.4

E is the equity weighting of 70% or 0.7

D is the debt weighting of 30% or 0.3

V is the E+D=0.7+0.3=1

WACC=11.20% *0.7/1+(5%*0.3/1*(1-0.4)

WACC=7.84% +0.90% =8.74%

       

4 0
3 years ago
Aquilera, Inc., has sales of $19.4 million, total assets of $14.4 million, and total debt of $5.2 million. The profit margin is
raketka [301]

Answer:

Net income= $2,328,000

ROA= 12%

ROE= 25.30%

Explanation:

Aquilera incorporation has a sales of $19.4 million

The total assets is $14.4 million

The total debt is $5.2 million

The profit margin is 12%

The net income can be calculated as follows

= profit margin × sales

= 12/100 × 19,400,000

= 0.12 × 19,400,000

= $2,328,000

The ROA can be calculated as follows

= Net income/Average Sales

= 2,328,000/19,400,000

= 0.12 × 100

= 12%

The ROE can be calculated as follows

= Net income/Total equity

Total equity= Total assets - Total debt

= 14,400,000-5,200,000

= 9,200,000

= 2,328,000/9,200,000

= 0.2530 × 100

= 25.30%

4 0
3 years ago
A company bills customers for services provided. the company records this transaction with a:_______
geniusboy [140]

A company bills customers for services provided. the company records this transaction with a  Debit Accounts Receivable.

A customer is an individual or business that purchases goods or services from another business. Customers are important because they drive sales. Without them, companies cannot continue to exist.

The definition of a customer is a person who purchases products or services at a store, restaurant, or other retail establishment. An example of a customer is someone who goes to an electronics store and buys a television. (informal) A person, especially a person, who interacts with others in some way.

In sales, commerce, and business, customers (sometimes called customers, purchasers, or purchasers) receive goods, services, products, or ideas obtained from sellers, vendors, or suppliers through financial transactions. is a person. Transaction or exchange for money or other valuable consideration

Learn more about customers here:brainly.com/question/380037
#SPJ4

6 0
1 year ago
What might you expect to find out about people who are described as credit risks?
wolverine [178]

Answer:

B. They have a history of not making their payments on time.

Explanation:

4 0
3 years ago
Read 2 more answers
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