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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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Sensitivity analysis:______.
alisha [4.7K]

Answer:

b. helps identify the variable within a project that presents the greatest forecasting risk.

Explanation:

Sensitivity analysis refer to the financial model that measures how the variable i.e. target one should be impacted and depend on the change in the other variable that we called as an input variable

In this, it would help to identify the variable that lies within the project and provide the high risk of forecasting

Therefore the option b is correct

4 0
2 years ago
Direct strategies of power are used when: A. one is an expert or has more knowledge. B. one is a novice or has less knowledge. C
ziro4ka [17]

Answer:

(A) one is an expert or has more knowledge.

Explanation:

Power is an individual's ability to influence others and do what the individuals wants as well as persons ability to resit the influence attempts of others.

3 0
3 years ago
Suppose a crime wave hits West Philadelphia, so that the marginal product and average product of police officers are now 60 arre
Stells [14]

Answer:

The ideal allocation of 500 police officers should be in West Philadelphia.

Explanation:

We must first describe what the word "allocation" means. Allocation refers to a place that, due to some circumstance, needs to be considered as a place for the allocation of resources. These resources can be money, materials, raw materials, labor, among others.

In the question above, we can see that a wave of crime broke out in Philadelphia, making this region a place that is in need of a specific resource, police. In this case, the ideal allocation of 500 police officers is in West Philadelphia, where the number of crimes is very large and there is a need for professionals like the police.

8 0
3 years ago
Read 2 more answers
Suppose that the market equilibrium price for a basic medical check-up is $50, in a market in which there is no health insurance
asambeis [7]

Answer:

The number of check-ups in this market would decrease.

Explanation:

This is an example of price ceiling.  

Price ceiling refers to a legal maximum price that is set by the government for a commodity to be sold.

Price ceiling set below the equilibrium price will result in a supply shortage as it will be effective and binding, while price ceiling set above the equilibrium price will not affect quantity supplied in the market as it will not be effective and binding.

Since the $40 price of heck-up is below $50 equilibrium price, it will result in shortage supply and the number of check-ups in this market would decrease.

5 0
3 years ago
Small changes in consumer demand can result in large variations in orders placed because of the:_______
UkoKoshka [18]

Small changes in consumer demand can result in large variations in orders placed because of the Bullwhip Effect. Thus the correct answer is D.

<h3>What is a consumer?</h3>

The consumer is referred as an end user of any product or service. He is the person who utilizes or takes the benefit of the products purchased. The person who buys a product is called a customer.

Demand estimations result in ineffective supply chains due to the bullwhip effect which is a characteristic of distribution channels. As one moves higher up the supply chain, it informs of increasing inventory variations in reaction to variations in consumer demand.

Therefore, option D Bullwhip effect is appropriate.

Learn more about the Bullwhip effect, here:

brainly.com/question/2815747

#SPJ4

The complete question is attached below-

Small changes in consumer demand can result in large variations in orders placed because of the:

A) Supply chain

B) Safety stock requirement

C) Lead time effect

D) Bullwhip effect

E) FCFS scheduling

4 0
1 year ago
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