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goldfiish [28.3K]
3 years ago
10

Which of the following is not true regarding the use of simulation in multinational capital budgeting? a. It can be used to gene

rate a probability distribution of NPVs. b. It can only be used for one variable at a time. c. It generates a probability distribution of NPVs by randomly drawing values for the input variable(s). d. It can be used to develop probability distributions of all variables with uncertain future values.
Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

<u>b. It can only be used for one variable at a time</u> is the false statement regarding the use of simulation in multinational capital budgeting.

<u>Explanation</u>:

The process of determining the net present value of the project is known as multinational capital budgeting. The capital budget can be determined by estimating the present value of cash flow in the project and subtracting the initial expenditure required for the projects.

When considering the use of simulation in multinational capital budgeting, it can be used for many variables at a time.

The flow of cash is focused in the long-term investment projects. Multinational capital budgeting can help in determining investment opportunity of the company.

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Ben and Carla Covington plan to buy a condominium. They will obtain a $229,000, 20-year mortgage at 5.0 percent. Their annual pr
Alla [95]

Answer:

$1,943.06

Explanation:

Monthly mortgage payment: $6.6 X $229 = $1,511.4

Monthly property taxes: $1,550/12 = $129.16

Monthly property insurance: $630/12 =$52.5

Monthly association fee: $250

Total monthly housing payment: $1,943.06

4 0
3 years ago
Read 2 more answers
3. Suppose Tyrone wants to open a savings account that earns 3.5% simple interest per year. He wants it to be worth $1500 in 4 y
saw5 [17]

Answer:

$1,307

Explanation:

The computation of the future value by using the following formula is shown below:

As we know that

Future value = Present value × (1 + interest rate)^number of years  

$1,500 = Present value × (1 + 0.035)^4

So, the present value is

= $1,500 ÷ (1.035)^4

= $1,307

Hence, the present value is $1,307 and the same is to be considered

3 0
3 years ago
Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,620 Cost of goods sold 4,240 Depreciation 355 Earnings before
Mademuasel [1]

Answer:

1.59 times

Explanation:

Average total assets = Beginning total assets + Ending Total assets / 2

Average total assets = 6,470 + 6,705 / 2

Average total assets =  $6,587.5

Beginning Total equity = Common stock + Retained earnings

Beginning Total equity =  $3,240 + $3,080

Beginning Total equity = $6,320

Ending Total equity = Common stock + Retained earnings

Ending Total equity= $880 + $1,130  

Ending Total equity = $2,010

Average total equity = Beginning Total equity + Ending Total equity / 2

Average total equity = $6,320 + $2,010 / 2

Average total equity = $4,165

Equity multiplier for 2017 =  Average total assets / Average total equity

Equity multiplier for 2017 = $6,587.5 / $4,165  

Equity multiplier for 2017 =  1.581632653061224

Equity multiplier for 2017 =  1.5816 times

7 0
3 years ago
b. Now suppose instead that housing credits are withdrawn gradually at a rate of $500 for each $1,000 that someone is earning ab
zavuch27 [327]

Answer: $0

Explanation:

Layla qualifies for $8,000 in housing credits.

These are withdrawn at $500 for every $1,000 she earns above the wage limit of $26,500

Layla's annual income = 35,000 + 7,500

= $42,500

Amount earned above limit = 42,500 - 26,500

= $16,000

Amount of housing credit withdrawn is $500 per thousand so for $16,000, $8,000 will be withdrawn from her housing credit.

Housing credit = 8,000 - 8,000

= $0

5 0
3 years ago
Your job includes ordering phone service for new employees. You are considering two phone plans. The first plan charges $23.35 p
BabaBlast [244]

Answer:

$34.68

Explanation:

The total cost by following the first plan will be the charge per months times  12 months

= $23.35 x 12

= $280.2

The total cost from the second plan will be the cost of the first three months at  $14.99 plus the cost of 9 months at $29.99

=($14.99 x 3) + ($29.99 x 9)

=$44. 97 +$269.91

=$314.88

The first plan is the better deal. It will save

= $314.88 - $280.2

=$34.68

5 0
3 years ago
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