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Ymorist [56]
3 years ago
12

When several alternative investment proposals of the same amount are being considered, the one with the largest net present valu

e is the most desirable. If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a(n) _____ index.
a. average rate of returnb. consumer price indexc. present value indexd. price-level index
Business
1 answer:
Likurg_2 [28]3 years ago
4 0

Answer:

The answer is c. present value index

Explanation:

Present value index is the ratio decided by dividing net present value of the project by its require initial net cash outflows.

Once having constraint on selecting investment with positive NPV to be made due to lack of fund, a firm's usually use Present value index for further decision making.

The investment with higher present value index shows that it generates more net cash flow or in other words, more efficient and requires less initial cash outflow, and thus usually be chosen over the other ones with lower present value index.

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Suppose the government implements a negative income tax plan to deal with the poverty problem. The negative income tax rate is s
Andreas93 [3]

Answer:

At least $2,500. If the family's income was $0, then the government will transfer $2,500 to them.

Explanation:

A negative income tax refers to a welfare system where individuals earning below a certain amount, instead of being taxed, receive money transfers from the government.

4 0
3 years ago
If both an asset group and goodwill in one of a company's reporting units have to be tested for impairment, which of the followi
irga5000 [103]

Answer: A. The other asset group should be tested for an impairment loss before goodwill is tested.

Explanation:

According to the IFRS standards, it is important and necessary to revalue your assets according to their net realizable value, i.e, assets should be reported after deducting accumulated depreciation or amortization in the case of goodwill. In the case of inventory, NRV should be calculated by estimating impairments.

The other asset groups are tested to check for impairment loss and later the goodwill is tested.  

3 0
3 years ago
If a court determines that a manager's corporate decision amounted to self-dealing, a. the manager is automatically personally l
telo118 [61]

Answer:

d. the business judgment rule will not apply.

Explanation:

A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.

One of the advantage of a corporation is that, owners have limited liability for debt to the extent to which they have invested and as such are not personally liable for some of debt owed by corporation.

A manager can be defined as an individual who is saddled with the responsibility of providing guidance, support, supervision, administrative control, as well as acting as a role model or example to the employees working in an organization by being morally upright.

Generally, managers are typically involved in taking up leadership roles and as such are expected to be build a strong relationship between their employees or subordinates by creating a fair ground for effective communication and sharing of resources and information. Also, they are required to engage their staff members (entire workforce) in the most efficient and effective manner.

In Business management, if a court of competent jurisdiction determines that a manager's corporate decision amounted to self-dealing i.e putting his or her own interests first, the business judgment rule will not apply.

Generally, in order for the business judgement rule to apply, it is expected or required that a manager should act in the best interest of a corporation.

7 0
3 years ago
James, a production manager at a growing company, has mastered the processes and procedures of overall management of the ongoing
IgorLugansk [536]

Answer:

Vicarious learning

Explanation:

The learning that comes from the observation of the things are often refered to as vicarious or observational learning. The production manager here observes the processes and procedures involved in production and had learned these as well which is the obsevational learning of James.

3 0
3 years ago
Novak Corp. had accounts receivable of $140,000 on January 1, 2022. The only transactions that affected accounts receivable duri
algol13

Answer:

a. $210,000

b. 21.69 times

c. 16.83 average days to collect receivables

Explanation:

a. Ending balance of accounts receivable

= Beginning account receivable + Net credit sales - Cash collections

= $140,000 + $3,795,000 - $3,725,000

= $210,000

b. Account receivable turnover

= Net credit sales ÷ [(Beginning inventory + Ending inventory)/2]

= $3,795,000÷ [($140,000 + $210,000)/2]

= $3,795,000 ÷ $175,000

= 21.69 times

c. Average collection period in days

= Average account receivable ÷ [ Annual sales ÷ 365]

= $175,000 ÷ [$3,795,000 ÷ 365]

= $175,000 ÷ $10,397

= 16.83 average days to collect receivables

5 0
3 years ago
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