Answer:
Negative NPV.
Explanation:
present value of cost exceeds present value of revenue that is been assumed in the investment plan of the said company/firm.
Net Present Value describes one of the discounted techniques of cash flow used in capital budget to determining the viability of a project or an investment. It is seen to have a huge difference between the present flow of the firms; which is cash inflows and the present value of cash outflows over a period of time. Experts has tagged its primary advantage to be that it is seen to considers the concept of the time value of money.
The correct answer would be d. all of the above
The answer is negotiable order of withdrawal or short for
the acronym NOW. The acronym NOW, when it is used in terms of financial institutions,
in stands for Negotiable Order of Withdrawal, it is a type of interest-grossing
checking account wherein a patron or customer is allowed to create drafts
against cash held on deposit or in short words, the owner of the account can
write an unlimited amount of checks for drafts or to be used.
Answer:
$50,000
Explanation:
Estimated Cost of New Equipment = $500,000
Useful life in years = 5
Estimated Residual Value = $50,000
Expected New Cash Inflows over life of asset = $700,000
Annual depreciation expense = (Estimated Cost of New Equipment-Estimated Residual Value)/Useful life in years
= ($500,000 - $50,000) / 5
= $450,000 / 5
= $90,000
Average annual cash flow = Expected New Cash Inflows over life of asset/ Useful life in years
= $700,000/5
= $140,000
Average annual operating income = Average annual cash flow - Annual depreciation expense
= $140,000 - $90,000
= $50,000
The answer you’re looking for is “structural relationships”
