Answer:
The correct answer is letter "B": An addition which increases future benefit.
Explanation:
An asset is a resource of economic value. Individuals, companies, and countries expect their own assets to generate economic benefits both now and in the future. Assets may be tangible, such as machinery and land or intangible, including products such as a trademark, a mechanical formula or property rights.
The accounting term addition <em>refers to the subsequent acquisition of a plant, property, or equipment. Therefore, they are to be considered as assets at the moment of recording them.</em>
Answer:
The correct answer is option a.
Explanation:
The short-run is an imaginary short period in which all the inputs cannot be varied. There is at least one input that cannot be varied. So in the short run, there are some fixed inputs and some variable inputs.
The cost incurred on fixed inputs are fixed costs and that incurred on variable inputs are variable costs. So there are fixed costs and variable costs in the short run.
In the long run, all inputs are variable so all costs are variable as well.
Answer:
B False
Explanation:
Modified Internal Rate of Return(MIRR) is computed using the following steps:
- Compute the discounted cash flows.
- Sum all discounted cash flows to generate net present value (NPV).
- Compute IRR from NPV.
Geraldo owns a well-known brand and allows Henry to sell products with that brand name. Geraldo has agreed to: product and trade name franchising.
<span>A franchiser is the persn that licenses its know-how, procedures, intellectual property and use of its business model and brand. In our case the franchiser is Geraldo. He gives the rights to sell its branded products and services to Henry, who is called a franchisee.</span>
Answer: The Rate of return earned by Investment G is 8.37%, while the rate of return earned by investment H is 8.54%.
We have
Investment G Investment H
Future Value of returns 151000 271000
No. of years 7 14
Costs 86000 86000
Rate of Return Formula :
Substituting we get ,
Investment G
RoR = 8.37%
Investment H
RoR = 8.54%
