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ozzi
3 years ago
5

Net present value is ______. used to determine if a project is an acceptable capital investment the difference between the prese

nt value of cash inflows and present value of cash outflows for a project inferior to the payback method when doing capital budgeting a capital budgeting technique that ignores the time value of money
Business
1 answer:
KATRIN_1 [288]3 years ago
7 0

Answer: the difference between the present value of cash inflows and present value of cash outflows

Explanation:

The value of money is always changing and usually for the worst. Inflation means that $1 today is not worth $1 in a year's time. This poses a risk to investors who want to make profit and can't do that if they do not cater for inflation or the loss of value in their profit estimations. This is where Net Present Value comes in.

NET PRESENT VALUE works by subtracting the present value of Cash Outflows ( investment) from the present value of Cash Inflows (Revenue).

To do this, a DISCOUNT RATE is used which is essentially a value that people believe the currency involved will reduce by going forward. This Discount Rate equates the value of money in the future to it's value now.

Once that is ascertained, a proper comparison can be made to see if the investment is worth it.

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What are the advantages a market economy offers producers?
kiruha [24]
<span>The most beneficial advantages for producers is open market economy because it is lead to more innovation and research & development through the absence of red tape. Producers don’t have to wait for the government to tell them what to make. They study demand, research trends and meet the customer’s needs through innovation. So, also encourages competition amongst firms to improve their product and service.</span>
6 0
3 years ago
Read 2 more answers
In the United States, sole proprietorships and partnerships outnumber corporations.a. Trueb. False
lianna [129]

Answer:

a. True

Explanation:

The sole proprietorship and partnerships outnumber corporations in United States but they net fewer sales and less income than corporations, individually and when combined.

8 0
3 years ago
Indicate the type of Deferred Tax account created by Unearned Revenues and Prepaid Expenses, respectively:
irina [24]

Answer:

The answer is Deferred tax asset and Deferred tax liability.

Explanation:

Unearned revenue creates deferred tax asset. In here, taxes have been paid because income has been received but have not been recognized on the income statement because according to the revenue recognition, the services for the revenue has not been rendered.

Prepaid expenses give rise to deferred tax liability. In here, taxes have been recognized on income statement but the actual tax has not been paid. Income tax expense on income statement is greater than taxes payable

5 0
2 years ago
Cox, North, and Lee form a partnership. Cox contributes $180,000, North contributes $150,000, and Lee contributes $270,000. Thei
Naya [18.7K]

If the partnership reports income of $150,000 for its first year, what amount of income is credited to Cox's capital account $47,500.

<h3>Partnership agreement calls for the income</h3>

                                                  Cox           North           Lee

Contribution                              $180,000   $150,000   $270,000

Interest On Capital balance     $9,000       $7,500       $13,500

Profit Allocation (Equally)         $40,000     $40,000     $40,000

Amount of Income credited to North's account = $7500 + $40,000 = $47,500

Allocated Profit = $150,000 - ($9,000+$7,500+$13,500) = $120,000

Equal Distribution = $120,000 / 3 = $40,000

To learn more about Equal Distribution visit the link

brainly.com/question/14259864

#SPJ4

6 0
1 year ago
A decrease in consumer spending can be expected to shift the aggregate demand curve ________.
xxMikexx [17]

Answer:

d. downward and cause output to decrease

Explanation:

As we know that

Aggregate demand = Consumption expenditure + government expenditure + net export

Where,

Net export = Export - import

In the case when there is a reduction in the consumer spending so it would be expected that the aggregate demand curve would be shifted to the downward due to which it results in reduction in output

Therefore the option d is correct

6 0
3 years ago
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