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3 years ago

Which methods of evaluating a capital investment project use cash flows as a measurement basis?

Business

2 answers:

ruslelena [56]3 years ago

8 0

Answer:

Payback Period, Internal Rate of Return, and Net Present Value use cash flows for evaluating capital investment projects.

Explanation:

There are three methods of evaluating a capital investment project that use cash flows as a measurement. These include Payback Period, Net Present Value and Internal Rate of Return. The payback period gives the idea about the time that is required for a person to get back his initial investment. Internal rate of return is used to determine profitability of potential investment. Net present value refers to the difference between the present value of cash outflows and the cash inflows for a specific period of time.

Further explanation:

The Payback period: In this method of payback period, it simply calculates the amount of time that it will take to get one’s original investment back. It helps in analyzing any risks related to investments. An investment with a lesser payback period is seen as a better investment because investor’s original expenses are at risk for a lesser time.

Internal rate of return: Internal rate of return makes use of the discount rates which makes the present value of cash flows in future, equivalent to zero. This strategy helps in comparing the profitability of various investments in different projects.

Net present value: The net present value method makes use of investor's requisite rate of return to compute the present price of future cash flow from the project. Net Present Value is used in creating capital budget and investment planning to estimate the profitability of the project.

Learn More:

Disadvantage of the payback period method : brainly.com/question/13168811 - (Stokholm)

Project acceptance when NPV is used brainly.com/question/13228231 - (Matiasemella)

Keywords:

Capital investment project, cash flow, payback period, internal rate of return, net present value.

bixtya [17]3 years ago

6 0

The method <span>of evaluating a capital investment project that use cash flows as a measurement basis are: </span><span>Payback period, internal rate of return, and net present value.
- PAyback period, used to determine how much asset is back after the initial saving
- internal rate of return, Used to measure potential profit from an investment
- Net present value, used to determine the worth of all company's assets</span>

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katen-ka-za [31]

Answer: True

Explanation:

It is required that all volunteers preparing to participate in the VITA/TCE programs must use Form 13614-C along with an effective interview for every return prepared at the site. This is a major requirement, if not they won't participate or partake in the program.

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2 years ago

Explain the following statement and answer to corresponding question. It is worth 15 points. "In a competitive model without con

Vaselesa [24]

Answer:

In marketing, price discrimination refers to selling the same product to different buyers at different prices depending on each buyer's purchasing power or preferences which result in them being able and willing to pay different prices. E.g. a movie theater that charges different prices depending on the age of the movie goers.

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3 years ago

The shifting balance from tangible goods to intangible services has marketing leaders adopting ________ as a guiding principle

aliina [53]

A marketing leaders adopts a service-dominant logic as guiding principle when there is shift in balance from tangible goods to intangible services.

<h3>What is service-dominant logic?</h3>

This logic refers to a perspective which introduces a new method for articulating an alternative view of exchange and value creation in the markets.

In conclusion, sometimes, a marketing leaders adopts a service-dominant logic as guiding principle when there is shift in balance from tangible goods to intangible services.

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1 year ago

On April 17, 2024, the Loadstone Mining Company purchased the rights to a copper mine. The purchase price plus additional costs

mojhsa [17]

The depletion for 2021 is $1,028,000 .

No, depletion is not considered part of the product cost and isn't included in the cost of inventory

<h3>Depletion per ton</h3>

1. Depletion per ton = $4280000/1070000

= $4 per ton

Depletion for 2021 = 257000 tons*$4

= $1,028,000

Therefore, The depletion for 2021 is $1,028,000 .

2. Depletion is not considered as part of the product cost, It is shown as an expense on the income statement and reduced from the value of the natural resource and so it is equivalent to the depreciation of assets.

Therefore, No, depletion is not considered part of the product cost and isn't included in the cost of inventory

To learn more about Depletion visit the link

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1 year ago

The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019

elena-14-01-66 [18.8K]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

The following two errors were made in the physical inventory counts: 1. 2018 ending inventory was understated by $8,000. 2. 2019 ending inventory was overstated by $4,000.

We were not provided with the relevant information to recalculate the cost of goods sold, but, I can provide the formula to solve the problem.

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

1- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory + 8,000)

2- COGS= beginning finished inventory + cost of goods manufactured - (ending finished inventory - 4,000)

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3 years ago