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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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Matt has decided to purchase his textbooks for the semester. his options are to purchase the books via the internet with next da
klemol [59]

I guess the correct answer is $4.

Matt's benefit was $4 from driving to campus to buy the concert ticket last week.

6 0
3 years ago
Match the treatment of unrealized gains and losses on debt investments existing at the time of transfer between investment categ
lisov135 [29]
Option D

Because the answer is AFS to HTM- Amortize to net income over remaining life.
5 0
2 years ago
The detailed formulation of future actions to achieve a particular end is a management activity called_________
Ann [662]

Answer:

Planning

Explanation:

Planning is one of the 4 planning process functions. Other functions are organizing, leading and controlling. Planning is the primary function as it lays out the action plan that needs to be implemented to achieve organizational goals and objectives. Planning involves foreseeing the future and identifying different ways to achieve the predetermined objectives. It is one of the important functions of management as all other functions are dependent on this function.

7 0
3 years ago
Explain the difference between a depository institution and a non-depository institution.
WINSTONCH [101]

Explanation:

First, Depository institution

Institution that collect money from people and pay interest . You may can deposit your cash and withdraw it anytime . If you put longer they pay interest. Interest may be fixed or variable. On other words, from that institution you can send your money to other people ,can get credit or debit card to withdraw or shopping. They gave you loans. Such institution are:

Commercial bank , Saving institution,credit union and so on.

In last remember that those who pay you interest ,give loan facilities, business transaction and collect your money they are Depository. They have 3 types of account for people who want to deposit their money. 1. Current account 2. Saving Account 3. Fixed

Non Depository institution

Where you cannot put your money and withdraw it . You would not get interest. They are intermediary between borrowers and saver. They are:

Mutual funds: where you buy scheme in units. It like investment . Then they pay you bonus and even you can sales it on market. Don't confuse mutual funds collect money from public invest it on market and share their profit.

Insurance companies: they insure your belonginess. They pay when your things goes beyond the normal level. Like. Car theft,goods damage.

Pension fund:

Security firms: investment companies ,broker house.

8 0
3 years ago
Below are some of the accounts that Company J has on their books:
pogonyaev

Answer:

b) $1,900

Explanation:

The computation of the total liabilities is shown below:

= Accounts Payable + Deferred revenue

= $700 + $1,200

= $1,900

The other items are related to the expenses which are shown in the income statement and current assets which are shown on the balance sheet

Therefore, only two items are shown in the total liabilities.

6 0
3 years ago
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