Answer:
A) IRR, NPV, Payback period
Explanation:
According to Graham and Harvey's 2001 survey, for capital budgeting decision making, the following capital techniques are used which are described below:
Internal rate of return: It is that rate of return in which the net present value is zero that means initial investment and the present value of the annual cash inflows are equal
Net present value: In this method, the initial investment is subtracted from the discounted present value cash inflows. If the amount comes in positive than the project is beneficial for the company otherwise not.
The computation of the Net present value is shown below
= Present value of all yearly cash inflows after applying discount factor - initial investment
The discount factor should be computed by
= 1 ÷ (1 + rate) ^ years
Payback period: It refers to the period in which the initial investment amount should be recovered. It is denoted in years
The formula to compute the payback period is shown below:
= Initial investment ÷ Net cash flow
I'm so sorry I don't know hopefully someone will help u
Answer: Option (d) is correct.
Explanation:
Contribution margin = Fixed cost + Pretax Income
= $1,296,000 + $1,656,000
= $2,952,000
Variable cost = Sales - Contribution margin
= (360,000 units × $19.80 per unit) - $2,952,000
= $7,128,000 - $2,952,000
= $4,176,000
Answer:
Interest saved by the couple = $3497.12
The answer and procedures of the exercise are attached in the following archives.
Explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
