When an individual creates a false corporation to shield or hide wrongdoing by the individual, this is called a corporate veil.

If a payback period for a project is greater than its expected useful life, the project's return will always exceed the company'

Rudiy27

Answer:

entire initial investment will not be recovered.

Explanation:

Payback period is one of the methods used in capital budgeting.

Payback period calculates how long it takes for the amount invested in a project to be recovered from its cummulative cash flows.

For example, if a project costs $360 and the cash flow each year for its 6 years useful life is $120. The amount invested would be gotten back from the cummulative cash flow in 3 years.

But if a project costs $360 and the cash flow each year for its 2 years useful life is $120. The amount invested would never be gotten back the cummulative cash flow. Therefore, the entire investment amount will never be entirely recovered.

The project will always not be profitable

I hope my answer helps you.

3 0

3 years ago

Net loss can be thought of as a __________ to the Capital account.<br><br> Debit<br> Credit

xz_007 [3.2K]

Answer:

The answer is Credit.

Explanation:

Net loss can be thought of as a <u>Credit </u>to the Capital account.

6 0

2 years ago

At year-end, Simple has cash of $ 22 comma 000, current accounts receivable of $ 80 comma 000, merchandise inventory of $ 24

oee [108]

Answer:

45.62 days

Explanation:

For computing the average number of days receivables, first, we have to calculate the account receivable ratio. The formula is shown below:

Account receivable ratio = Net credit sales ÷ Average accounts receivable

where,

Average account receivable = (Beginning account receivable balance + ending account receivable balance) ÷ 2

Now put these values to the above formula

So, the answer would be equal to

= $480,000 ÷ ($40,000 + $80,000 ÷ 2)

= $480,000 ÷ $60,000

= 8 times

Now, the average level of receivables equals to

= Total number of days in a year ÷ Account receivable ratio

= 365 days ÷ 8

= 45.62 days

5 0

3 years ago

Based on the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc

Sonja [21]

The expected return for stock A and B is 8.55% and 15.11% respectively.

<h3>What is the Expected return?</h3>

= (Probability of Recession × Return during recession) + (Probability of normal × Return during normal) + (Probability of boom × Return during boom)

Expected return for stock A:

= (0.20 * .05) + (0.57 * 0.08) + (0.23 * 0.13)

= 0.0855

= 8.55%

Expected return for stock B:

= (0.20 * 0.20) + (0.57 * 0.09) + (0.23 * 0.26)

= 0.1511

= 15.11%

Therefore, the expected return for stock A and B is 8.55% and 15.11% respectively.