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storchak [24]
4 years ago
12

There are four basic principles of finance. Which principle correctly describes the following​ statement: ​ "A dollar today is w

orth more than a dollar received in the future. ​ Conversely, a dollar received in the future is worth less than a dollar received​ today"?
Business
1 answer:
Mekhanik [1.2K]4 years ago
8 0

Answer:

Time value of money

Explanation:

The ability of money kept in a savings deposit to earn interest over time and the increase in the total interest in line with the length of time, brought us to a conclusion that <em>an amount of money to be received now, that is in the present, is worth more than the same amount if received in the future.</em>

The increase in the value of money as a result of interest earned on it, increases the value of money, this concept is what is referred to time value of money.

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A company is considering investing in a new machine that requires a cash payment of $47907 today. The machine will generate annu
swat32

Answer:

12%

Explanation:

Calculation for the internal rate of return if the company buys this machine

Using this formula

IRR = Initial investment/Annual Cash flow

Where,

Initial investment =$47,907

Annual Cash flow =$19,946

Let plug in the formula

IRR= $47,907/$19,946

=2.402

Using PV factor table = 2.402

IRR = 12%

Therefore internal rate of return if the company buys this machine will be 12%

8 0
4 years ago
The data below relate to the month of April for Monroe, Inc., which uses a standard cost system and a two-variance analysis of f
Contact [7]

Answer:

Fixed overhead absorption rate

= <u>Budgeted fixed overhead</u>

  Budgeted activity level

= $<u>12,000</u>

    16,000 hours

= $0.75 per hour

Production volume variance

= (Standard hours - Budgeted hours) x Fixed overhead rate

= (16,250 - 16,000) x $0.75

= $187.5(F)

The correct answer is A

Explanation:

First and foremost, we need to calculate fixed overhead absorption rate, which is the ratio of budgeted fixed overhead to budgeted hours. then, we will calculate the production volume variance, which is the difference between standard hours and budgeted hours multiplied by fixed overhead absorption rate.

7 0
3 years ago
During March, the production department of a process manufacturing system completed a number of units of a product and transferr
ANEK [815]

Answer:

Direct Materials EU = 165,000

Direct Labour EU = 144,000

Explanation:

Equivalent Units (Weighted Average Method) =  Beginning Goods In process + Units Completed + Ending Goods x % of completion

Direct Materials:  25,000 + 110,000 + 30,000 x 100% = 165,000

Direct Labor: 25,000 + 110,000 + 30,000 x 30% = 144,000

Remember: In the weighted average cost system the units in process at the beginning are count as a full equivalent unit of production.

8 0
4 years ago
Since public relations communications are typically perceived as _____, they are not subject to the problems of clutter that are
denis23 [38]

Answer:

news items

Explanation:

Public relations refers to the communication that the company's have with the public through media outlets, which is why they are perceived as news items. This being the case, the public sees this news item and pays attention to this alone, as opposed to other promotional communication methods such as newspapers and articles where various information is cluttered together making it difficult to focus on one thing alone.

7 0
3 years ago
Mature Products Corporation produces goods that are very mature in their product life cycles. Mature Products Corporation is exp
Pavel [41]

Answer:

The value of stock = $10.567

Explanation:

We will solve it with the help of present value table, attached as follows:

3 0
3 years ago
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