Answer:
The answer is option B) If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a present value index.
Explanation:
Present Value Index is a used to measure the feasibility and efficiency of investment options. It is the ratio of the Net Present Value of a project to the initial option required for it.
When several alternative investment proposals of the same amount are being considered, the one with the largest net present value is the most desirable.
However, If the alternative proposals involve different amounts of investment, it is useful to prepare a relative ranking of the proposals by using a present value Index.
Answer:the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.
Explanation:
Straight line depreciation is calculated as
Depreciation= Initial value – salvage value / useful life
Depreciation=($48,400- $9,000)/10=$3,990
The depreciation expense each year would be $3990
Book value = Cost of asset- accumulated deprecation
Book value = Cost of asset - (2 years x depreciation)
= $48,400- (2 x $3,990)
= $40,420
Therefore, the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.
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Answer:
The correct answer is letter "C": FICA.
Explanation:
FICA (<em>Federal Insurance Contributions Act</em>) tax is a mandatory deduction taken from employees' payment to cover elder American's Social Security and Medicare. It is a 12,4% deduction financed by two parts: half of that amount is taken from the worker's paycheck and the other half is paid by the employer.
Answer:
It’s A the nominal interest rate
Explanation:
