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3 years ago

Suppose the economies of China and India have begun to slow down very rapidly. Based on this scenario

Business

1 answer:

bazaltina [42]3 years ago

6 0

Answer:

The correct answer is C

Explanation:

Economies means the state of the region or the country in relation to the consumption and the production of the services and the goods and also the supply of the money.

If the economies of the India and the China, will be slow down, then the loanable funds as well as the interest rates will increase because the money for liquidity will be negligible which lead to competition among using the money for personal consumption or to delay the consumption through lending the money out.

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The comparison of the actual results of capital investments to the projected results is referred to as?

harina [27]

The comparison of the actual results of capital investments to the projected results is referred to as post-audit.

The payback method determines how long it will take for the company to recoup its investment. Annual cash flows are compared to the initial investment, but the time value of money is not considered and cash flows beyond the payback period are ignored.

Companies apply the time value of money in a variety of ways to make yes or no decisions about investment projects and between competing projects. Two of the most common methods are net present value and internal rate of return (IRR).

The minimum return on the capital investment required by management is called the return on investment. The collection method considers cash flows that occur both during and after the collection period.

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1 year ago

What Are D O P E Rap Songs?????

navik [9.2K]

Answer:

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Explanation:

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4 years ago

Read 2 more answers

Lancaster Corp. is considering two equally risky, mutually exclusive projects, both of which have normal cash flows. Project A h

levacccp [35]

Answer:

Explanation:

IRR is the discount rate point where NPV equal to 0. Given, both projects have same NPV at 8%, when discount rate is higher than 8%, NPV of project A will decrease faster than that of project B because project A's IRR is lower than project B's IRR. When discount rate is lower than 8%, NPV of project A will increase faster than project B's.

We will go through each of the answer options:

A. If the cost of capital is 9%, Project A's NPV will be higher than Project B's. False

Explaination: Cost of capital here is higher than 8%, NPV of project A will be lower than that of project B.

B. If the cost of capital is 6%, Project B's NPV will be higher than Project A's. False

Explaination:

C. If the cost of capital is greater than 14%, Project A's IRR will exceed Project B's. False

Explaination: IRR is dependent on pattern of cashflows rather than cost of capital.

D. If the cost of capital is 9%, Project B's NPV will be higher than Project A's. True

Explaination: This is an opposite answer to option A.

E. If the cost of capital is 13%, Project A's NPV will be higher than Project B's. False

Explaination: When the cost of capital is 13%, NPV of project A is negative and NPV of project B is positive.

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3 years ago

How does tax help to stablise the prices of the product

sammy [17]

Tax helps in stablising the price of product ; because tax is added to the price of product as value added that's why increase in tax system also increases in price of product; also businessmen needs to pay tax from their profit.

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3 years ago

You have been engaged to review the financial statements of Sage Corporation. In the course of your examination, you conclude th

Triss [41]

Answer and Explanation:

The Journal entry is shown below:-

1. Salaries & Wages Expenses Dr, $3,540

To Salaries & Wages Payable $3,540

(Being salaries and expenses is recorded)

2. Salaries & Wages Expenses Dr, $28,800

To Salaries & Wages Payable $28,800

(Being salaries and expenses is recorded)

3. Prepaid Insurance Dr, $2,250

To Insurance Expense $2,250

($2,700 × 10 months ÷ 12)

(Being prepaid insurance is recorded)

4. Sales Revenue Dr, $109,080

($1,927,080 × 6 ÷ (100 + 6))

To Sales Tax Payable $109,080

(Being Sales revenue is recorded)

5. Sales Tax Payable Dr, $93,780

To Sales Tax Expense $93,780

(Being sales tax expenses is recorded)

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3 years ago