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3 years ago

When potential capital investments of different size are compared

Business

1 answer:

ollegr [7]3 years ago

3 0

Answer: profitability index

Explanation: When potential capital investment of different size are compared, management should choose the one with the:

Highest profitability index.The Profitability Index (PI) measures the ratio between the present value of future cash flows and the initial investment. The index is a useful tool for ranking investment projects and showing the value created per unit of investment.

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Use commercial bank and Federal Reserve Bank balance sheets to demonstrate the immediate effect of each of the following transac

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Answer: A

Explanation: That’s it

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3 years ago

Assume Maine Line Railway is considering hiring a reservations agency to handle passenger reservations. The agency would charge

Keith_Richards [23]

Answer:

$214,000

Explanation:

The total reservation cost per month is given by the following expression:

$R = \$14,000+\$1*n$

Where 'n' is the number of monthly reservations.

If there are 200,000 reservations for passengers taking a trip next month, the reservation cost is:

$R = \$14,000+\$1*200,000\\R=\$214,000$

Total reservation cost is $214,000.

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3 years ago

Read 2 more answers

How does a local water budget differ from the water budget of the whole earth?

Brrunno [24]

The way that a local water budget differs from the water budget of the whole Earth is that t<span>he local water budget is not balanced and the whole Earth is balanced.
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3 years ago

Black Diamond Company produces snow skis. Each ski requires 2 pounds of carbon fiber. The company’s management predicts that 6,1

frutty [35]

Answer:

Production for the third quarter 159,500

Explanation:

Sales for the period 161,000

Desired ending inventory 4,600

Total production needs 165,600

Beginning Inventory (6,100)

Production for the third quarter 159,500

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3 years ago

A group of workers normally consists of 60 men, 30 women and 20 boys. They are paid at standard hourly rates as under:

dexar [7]

Labour cost variance = R.s 33,000 (F)
Labour rate variance = R.s 33000 (F)
Labour efficiency variance = 0

Given:

Standard Number of men = 60

Standard Number of women = 30

Standard Number of boys = 20

Standard hour rate for men = R.s 280

Standard hour rate for women = R.s 160

Standard hour rate for boys = R.s 140

Weekly working hour = 40 hours

Expected unit = 5,000 units

Number of men in march week = 70

Number of women in march week = 25

Number of boy in march week = 25

Actual wage for men = R.s 270

Actual wage for women = R.s 165

Actual wage for boys = R.s 130

Actual units = 4,500 units

Find:

Labour cost variance
Labour rate variance
Labour efficiency variance

Computation:

Labour cost variance = [SC for AO] - AC

Labour cost variance = [( 70 × 280) + (25 × 160) + (25 × 140)] - [(70 × 270) + (25 × 165) + (25 × 130)] × 40

Labour cost variance = (27,100 - 26,275 ) × 40

Labour cost variance = R.s 33,000 (F)

Labour rate variance = (SR - AR) × AH worked

Labour rate variance = [(280 - 270)70 + (160 - 165)25 + (140 - 130)25]40

Labour rate variance = [700 - 125 + 250]40

Labour rate variance = [825]40

Labour rate variance = R.s 33000 (F)

Labour efficiency variance = (SH allowed - AH worked)SR

Labour efficiency variance = (0 - 0)SR

Labour efficiency variance = 0

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3 years ago

When potential capital investments of different size are​ compared

When potential capital investments of different size are compared