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marta [7]
3 years ago
9

It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest

to identify.B) only when the stand-alone principle fails to hold.C) because ultimately it is the change in a firm's overall future cash flows that matter.D) in order to accommodate unforeseen changes that might occur.E) whenever sunk costs are involved.
Business
1 answer:
abruzzese [7]3 years ago
8 0

Answer:

C) because ultimately it is the change in a firm's overall future cash flows that matter.

Explanation:

Under capital budgeting decisions, decisions are made with respect to addressing the questions like what is the benefit of selecting the project and investing on it.

If the answer to above question is raised income, then the project is selected. Accordingly the raised income in cash terms will be measured by increase in cash flows, that is incremental cash flows.

In simplest terms additional cash flows.

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The method of determaining what a business will get in exchange for its products
liubo4ka [24]

Answer:

A. pricing

Explanation:

Pricing entails determining the value to attach to a product. It is the process through which a business decides how much customers will pay for its products. A business must consider the production costs and the desired margins when setting a price.

Price plays a crucial role in the success of a product and the business.  A high price has higher profit margins but may put-off some customers. A low price may attract demand but may lead to losses. Sometimes, low prices are associated with a poor quality product.

4 0
2 years ago
A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a:
goblinko [34]

A company's plan for the acquisition of long-lived assets, such as buildings and equipment, is commonly called a Capital Budget.

<h3>What is a Capital Budget?</h3>
  • The procedure a company uses to assess potential big projects or investments is called capital budgeting.
  • Before a project is accepted or denied, capital budgeting is necessary. Examples of such projects include the construction of a new plant or a significant investment in a third-party enterprise.
  • It is a means of locating a superior offer for the expansion of the company.
  • A company's bottom line is frequently affected by significant capital decisions, which are frequently tied to capital planning.
  • In capital budgeting, projects that improve a business are chosen. Almost everything, including the acquisition of land or the purchase of fixed assets like a new truck or machinery, can be included in the capital budgeting process.

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7 0
1 year ago
Your friend is going to purchase a car and will finance it. she is borrowing $20,000 at a monthly rate of 0.50 nd will pay it of
stiv31 [10]

The monthly payment is $386.67.

<h3>What is the monthly interest rate?</h3>
  • A monthly interest rate is simply the amount of interest charged in one month.
  • This does not include any other fees associated with the loan, and it does not indicate how expensive a loan is.
  • APR, on the other hand, is the annual percentage rate charged on a loan for a year.

So,

  • PV = 20,000, I/y = 0.50, n = 12 × 5, FV = 0
  • CPT PMT which equals $386.67

Therefore, the monthly payment is $386.67.

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6 0
1 year ago
Toussaint Company issued 10,000 shares of its common stock in exchange for merchandise that it will resell. The merchandise had
Aleks [24]

Answer:

The correct answer is $300,000.

Explanation:

According to the scenario, the computation of the given data are as follows:

Original cost = $250,000

Fair value = $300,000

Retail value = $520,000

As Share based transaction of the organization record or issued always at fair value for which the goods or services are exchanged.

Here, Fair value is given.

So, the transaction will be recorded at fair value = $300,000

7 0
3 years ago
A company sells a plant asset which originally cost $373000 for $111000 on December 31, 2021. The Accumulated Depreciation accou
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The Accumulated depreciation account had a balance of $144000

<h3>What is Accumulated depreciation?</h3>

Accumulated depreciation is the total amount of a company's asset depreciation, whereas depreciation expense is the amount depreciated for a single period. Depreciation is an accounting entry that represents the decrease in the cost of an asset over its useful life.

Accumulated depreciation is the total amount of depreciation that has been expensed against the asset's value. On the balance sheet, fixed assets are recorded as a debit, while accumulated depreciation is recorded as a credit, offsetting the asset.

Accumulated depreciation accounts are credit-balanced asset accounts (known as a contra asset account). It is classified as a contra asset account because it has a negative balance that is intended to offset the asset account with which it is paired, resulting in a negative balance.

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4 0
2 years ago
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