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Arlecino [84]
3 years ago
8

Which of the following statements indicates a disadvantage of using the regular, or conventional, payback period for capital bud

geting decisions? Check all that apply. A. The payback period does not take into account the cash flows produced over a project’s entire life. B. The payback period does not take into account the time value of money effects of a project’s cash flows. C. The payback period is calculated using net income instead of cash flows.
Business
1 answer:
svp [43]3 years ago
5 0

Answer:

A. The payback period does not take into account the cash flows produced over a project’s entire life. B. The payback period does not take into account the time value of money effects of a project’s cash flows.

Explanation:

The payback period method calculates the amount of time that is taken to recoup an investment made on a project.

Payback period is calculated using cash flows.

The disadvantages of payback period are :

1. It doesn't take into consideration the time value of money.

2. It doesn't take into account the cash flows after original investment has been recouped.

The discounted payback corrects for these disadvantages by using a discounted cash flow.

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On April 1, a patent with an estimated useful economic life of 12 years was acquired for $1,500,000. In addition, on December 31
Tasya [4]

Answer:

April 1

Debit : Patent $1,500,000

Credit : Cash $1,500,000

December 31

Debit : Amortization $125,000

Credit : Accumulated Amortization $125,000

December 31

Debit : Impairment loss  $6,000,000

Credit : Accumulated Impairment loss $6,000,000

Explanation:

Both the Amortization and Impairment loss reduce the value of assets. They are therefore expenses accounted in Income Statement.

Amortization : is the loss of value of an asset due to passage of time.

Amortization Expense = (Cost - Residual Amount) ÷ Useful Life

                                     = ( $1,500,000 - $ 0) ÷ 12

                                     = $125,000

Impairment loss : is the excess of the Carrying Amount of an Asset over its Recoverable Amount( Higher of Value in Use and Fair Value less Cost to Sell)

6 0
2 years ago
(LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among
garri49 [273]

Answer:

  a) 120 skiers per day

  b) 6.25% increase in revenue

Explanation:

a) If the average skier stays 10 days, the average turnover is 1/10 of the skiers per day, or 1200/10 = 120 skiers per day.

__

b) For a stay of n days, the average skier spends ...

  50 +(n-1)30 = 20 +30n

and the average spending per day is ...

  (20 +30n)/n = (20/n) +30

So, for a 10-day stay, the average skier spends in restaurants ...

  20/10 +30 = 32 . . . . per day

And for a 5-day stay, the average skier will spend ...

  20/5 +30 = 34 . . . . per day

The change in restaurant revenue is expected to be ...

  (34 -32)/32 × 100% = 2/32 × 100% = 6.25%

Restaurant revenues will be 6.25% higher compared to last year.

8 0
3 years ago
Phillip deposited $7,775 into a savings account 14 years ago. the account has an interest rate of 4.5% and the balance is curren
Bas_tet [7]
The future amount of an investment with compound interest can be calculated through the equation,

     F = P x (1 + ieff)^n

where F is the future amount, P is the current value of the money, ieff is the effective interest (rate per year), and n is the number of years.

From the equation, all are given except for the effective interest, i. Now, substituting the known values,
  14,398.87 = (7,775) x (1 + ieff)^14

The value of ieff from the equation is 0.044999. 

Since the value of the ieff when translated to percentage is equal to 4.5% as well, the interest rate is compounded yearly. 
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3 years ago
___________business that is carried out across national borders, including international trade, foreign manufacturing, and the g
maksim [4K]

Answer:

International business is the correct answer.

Explanation:

  • International business includes all economic activities that take place for the movement of resources, services, goods, people, thoughts, and technologies across national borders.
  • International business is important because International exchange makes the business more successful and to increase the market of its country.
  • The benefits of international business are: It Increase the Organization's reputation and expand the Company Markets.

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Bill smith economic influences
dusya [7]

I don't really know of Bill Smith but I know Adam

Smith's best - known ideas formed the basis of economic theory , including the invisible hand theory ( the idea that free - markets coordinate themselves ) , the division of labor ( the idea that people should specialize in specific tasks ) , and the measurement of economic activity ( Gross Domestic Product ) .

Please follow me and Mark as brainlest.

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7 0
3 years ago
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