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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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A portfolio of stocks may achieve diversification benefits if the stocks that comprise such portfolio are:____.
Vanyuwa [196]

A portfolio of stocks may achieve diversification benefits if the stocks that comprise such portfolio are not perfectly positively correlated.

A stock portfolio is a collection of stocks that are invested in with the hope of making a profit. By putting together a diverse portfolio that spans various sectors individual  will be able to become a more resilient investor.

This is  because if one sector takes a hit, the investments  held by you  in other sectors aren’t necessarily affected.

When assembling a stock portfolio, it’s important to have the organizational goals in mind beforehand. That way the  decision-making process is guided by reason as opposed to emotion.

To know more about stock portfolio here:

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4 0
2 years ago
Southwest U's campus book store sells course packs for $14 each. The variable cost per pack is $12, and at current annual sales
Mumz [18]

Answer:

$23,000

Explanation:

current annual sales = 49,000 packs

Selling price of course packs = $14 each

variable cost per pack = $12

Earnings = $75,000

Contribution:

= current annual sales × (Selling price of course packs - variable cost per pack)

= 49,000 packs × ($14 - $12)

= 49,000 packs × $2

= $98,000

Fixed costs of producing the course packs:

= Contribution - Earnings

= $98,000 - $75,000

= $23,000

4 0
3 years ago
Northeastern cities are important trade centers. Which of the following statements does not correctly describe the economic role
Advocard [28]
Northeastern cities are important trade centers.
T<span>he following statement does not correctly describe the economic role of a northeastern city.
</span>D. Providence is a city not a county where there are farms.
5 0
3 years ago
Which of the following is a risk (or potential pitfall) of cost leadership? Multiple Choice a. Cost differences increase as the
musickatia [10]

Answer:

d. Cost cutting in one area of the value chain might increase costs in another.  

Explanation:

Although cost leadership is an efficient way to dominate the competition,it does have potential pitfalls if not executed correctly. For example, if operating cost is decreased, the changed product feature may imply a higher marketing cost afterward. In order to be truly efficient, the cost leadership strategy has to be implemented in such a way, so it doesn't impact other value chain costs negatively (increasing them).

6 0
3 years ago
In the _____ stage of selecting information technology projects, organizations select information technology projects. a. projec
Rainbow [258]

In the <u>Resource Allocation</u> stage of selecting information technology projects, organizations select information technology projects.

Explanation:

The first step of a planning process to align the information technology strategic plan to the organization's overall strategic plan

The<u> project planning  stage</u> refers to that stage of project planning which involves , selecting information technology projects, organizations and defining the scope of the project , benefits, and constraints of the same

The <u>business area analysis</u>  stage of information technology planning outlines business processes that are central/important  in  achieving strategic goals and helps determine which ones could most benefit from information technology.

So,it is in the <u>Resource Allocation</u> stage of selecting information technology projects, organizations select information technology projects.

3 0
3 years ago
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