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Alex_Xolod [135]
3 years ago
6

If a payback period for a project is greater than its expected useful life, the ___________.

Business
1 answer:
just olya [345]3 years ago
4 0

Answer: d. Entire initial investment will not be recovered.

Explanation:

The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.

Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.

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Improperly capitalizing a repair and maintenance expense item as fixed asset will result in:____.
Fudgin [204]

Improperly capitalizing a repair and maintenance expense item as a fixed asset will result in an <u>overstatement of profit in the current year and an understatement in future years</u>.

Fixed assets seek advice from long-term tangible assets which can be used inside the operations of an enterprise. They offer long-term monetary advantages, have a useful existence of a couple of yr, and are labeled as assets, plants, and equipment on the balance sheet.

Fixed assets, additionally called lengthy-lived assets or property, plant, and the system is a term utilized in accounting for assets and belongings that can't effortlessly be transformed into cash. Fixed assets are unique from the contemporary property, which includes coins or bank accounts because the latter are liquid property.

Fixed assets are capitalized. It really is due to the fact the advantage of the asset extends past the year of buy, not like different costs, which might be length expenses benefitting handiest the duration incurred. constant assets should be recorded at a price of the acquisition

Learn more about Fixed assets here brainly.com/question/20289326

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5 0
2 years ago
Had the government taken over the assets of Global Trading without compensation, and not taken over the assets of any other comp
AlladinOne [14]

Answer: Expropriation

Explanation:

Expropriation means to take possession of a private property for public use.

Expropriation can be defined as the process by which government takes over private owned properties against the wishes of the owners.

Government takes over those properties with the aim of using them to benefit the public. The property owners might be compensated.

The government expropriate private properties sometimes, for infrastructural purpose such as airport, highway and railway.

Expropriated properties are usually taken against the wish of the private owners.

3 0
3 years ago
Investors are willing to purchase stocks having high P/E ratios because:
skelet666 [1.2K]

Answer:

D. They expect these shares to have greater growth opportunities.

Explanation: P/E(price to earning) ratio is a ratio used in the stocks and other marketable securities to determine the price of the shares of a particular Company in relationship with the annual net income of the company per share.

A HIGHER PRICE TO EARNING RATIO INDICATES THAT THE COMPANY INVOLVED IS EFFICIENTLY UTILIZING ITS RESOURCES IN ORDER TO GENERATE PROFIT,IT ALSO SHOWS THAT THEIR IS HIGH DEMAND FOR THE COMPANY'S SHARES BECAUSE INVESTORS TRUST IN THE COMPANY'S ABILITY TO GROW AND MAKE PROFIT.

4 0
3 years ago
International trade has always played a role in the U.S. economy. Is this role increasing or decreasing (in terms of exports and
Arturiano [62]

Answer: Option (F)

Explanation:

International trade tends to allow nations to expand their respective markets for commodities, goods and services which otherwise wouldn't have been available. As the outcome of the international trade, market tends to contain the greater competition, thus indirectly tends to have competitive prices, that further brings cheaper commodities home to consumer.

The vital point under this scenario is that within the past decade due to technological transformation the cost of communication has decreased drastically and thus has always impacted International trade.

8 0
3 years ago
Alexander Industries is considering a project that requires an investment in new equipment of $3,200,000, with an additional $16
Yakvenalex [24]

Answer:

The total cost is 3,360,000 and consiste of the proce of the new equipment plus the shipping and installtion cost. In contrast, Alexander's initial investment outlay are liabilities.

Explanation:

acquisition cost + shipping and installation cost = equipment value

3,200,000  + 160,000 = 3,360,000

The increase in liablities, will be that, liabilities, not cost, because is not associate with the equipment being ready to use. The equipment is ready to use, once is installed. so shipping and installment cost should be activated, not the accruals and account payable.

8 0
3 years ago
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