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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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Answer:

FIFO LIFO Weighted average

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Ending inventory 1,380 1,060 (1,060 + 1,380)/2 = $1,220

Explanation:

Attached is the tabulated solutions

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3 years ago
4. when the total expenses are greater than the total revenues, (a) the income summary account has a credit balance. (b) the inc
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An income summary account is a temporary account in which the revenue and expenses closing entries are entered to find out the profit or loss.

In the income summary account, all the revenue account closing entries are credited, and all the expenses closing entries are on the debit side.

Thus, if the credit balance is more than the debit balance, it shows the profit and if the debit balance is more than the credit balance, it shows the loss.

Learn more about "Income summary":

brainly.com/question/9122916

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1 year ago
Kathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrella Company. She estimates there
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Answer:

Explanation:

Attachment below

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3 years ago
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Answer:

"Legs"

Explanation:

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Having legs means a concepts ability to remain flexible and grow while maintaining an entitie's brand and identity.

Such campaigns work in whatever medium you decide to use. For example digital media, radio and television.

It should be a concept that is replicable over the life of the campaign

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This service allows you to pay at a point of sale and accesses funds in the bank but usually does not charge you a fee:
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A debit card

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