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Elis [28]
3 years ago
9

Suppose a firm has evaluated four capital budgeting projects and, using one of the time value of money-capital budgeting techniq

ues, has determined that all of the projects are acceptable. If the projects are mutually exclusive, which of the following capital budgeting techniques should be used to make the purchasing decision to ensure the firm's value is maximized?
traditional payback period (PB)

the internal rate of return (IRR)

modified internal rate of return (MIRR)

net present value (NPV)
Business
1 answer:
Dima020 [189]3 years ago
6 0

Answer:

The answer is: the following three should be used.

  • net present value (NPV)
  • traditional payback period (PB)  
  • the modified internal rate of return (MIRR)

Explanation:

First of all, the NPV of the four projects must be positive. Only NPV positive projects should be financed. If the NPV is negative, the project should be tossed away. This is like a golden rule in investment.

Now comes the "if" part. What does the company value more, a short payback period or a higher rate of return.

If the company values more a shorter payback period (usually high tech companies do this due to obsolescence), then they should choose the project with the shortest payback period.

If the company isn't that concerned about payback periods, then it should choose to finance the project with the highest modified rate of return. This means that the most profitable project should be financed.

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When calculating the net operating income of a property, it is important to identify any expenses that will be incurred in attem
Fantom [35]

Answer:

The correct answer is letter "C": Mortgage payments.

Explanation:

Net Operating Income or NOI reflects income after operating expenses deducted but before income taxes and interest are deducted. If the result is a positive value it is called <em>Net Operating Income</em>. If the figure is negative, it is referred to as <em>Net Operating Loss</em>.

Net operating income is often used to calculate real estate income, such as residential properties or commercial properties. <em>NOI is calculated by determining the Gross Operating Income (Gross potential income minus vacancy and credit loss) and subtracting the operating expenses (maintenance, fees, and insurance). </em>

<em> </em>

Thus, <em>mortgage payments are not considered in the calculation of the NOI.</em>

6 0
3 years ago
The tax rates are as shown. taxable income tax rate $0 – 50,000 15% 50,001 – 75,000 25% 75,001 – 100,000 34% 100,001 – 335,000 3
Goshia [24]
To get the answer, first you have to identify at which rate is your taxable income falls. From the rage of <span>100,001 – 335,000, it have 39%. Then you will just simple multiply it.
Income x 0.39 = tax rate
the answer is </span><span>$</span>50,510.07.
3 0
3 years ago
What is the balance of the manufacturing overhead account and is overhead underapplied or overapplied at the end of the year?.
baherus [9]

The balance of the manufacturer overhead account is Credit of $30,000, overapplied.

  • credit of $30,000, overapplied.

<h3>Underapplied Overhead vs. Overapplied Overhead</h3>

Underapplied overhead is the opposite of overapplied overhead. Overapplied overhead occurs when expenses incurred are actually less than what a company accounts for in its budget. This means that a company comes in under budget and achieves a lower amount of overhead costs during the accounting period.

Therefore, the correct answer is as given above.

learn more about overhead account from here:

brainly.com/question/26396695

3 0
3 years ago
Lucy and Fred want to begin saving for their baby's college education. They estimate that they will need $120,000 in eighteen ye
dezoksy [38]

Answer:

$4,265.55

Explanation:

Future value = $120,000

Interest rate (i) = 5%

Annual deposit = ?

Time period (n) = 18 year

Since deposit are to be made at the beginning of each year, hence the relevant factor table to be used is future value annuity due factor table.

Future value = Annual deposit x future value annuity due factor (i%, n)

120,000 = Annual deposit x FVADF (5%, 18period)

120,000 = Annual deposit x 28.13238

Annual deposit = 120,000/28.13238

=$4,265.547

=$4,265.55

4 0
4 years ago
This exercise is built around Whole Foods Market’s financial statements from the chapter. Average common shareholders’ equity fo
uysha [10]

Answer: ROCE was 13.7% in 2012

Explanation:

4 0
3 years ago
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