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Elza [17]
3 years ago
9

What is capital budgeting?

Business
1 answer:
amid [387]3 years ago
3 0

Capital budgeting is the process in which a business determines and evaluates potential expenses or investments that are large in nature. These expenditures and investments include projects such as building a new plant or investing in a long-term venture. Often times, a prospective project's lifetime cash inflows and outflows are assessed in order to determine whether the potential returns generated meet a sufficient target benchmark, also known as "investment appraisal

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Two different methods of solving a produc­tion problem are under consideration. Both methods are expected to be obsolete in six
DiKsa [7]

Answer:

10781

Explanation:

In order to find the additional annual revenue for the two method a break even point must be calculated

Method A

=-8000(1.1)^6+20000(1.1)^6-22000-(u)

=-15776.44-22000 -u

=-37776.44-u

Method B

= -52000(1.1)^6+15000(1.1)^6-17000-2u

=9995.4-17000-2u

=-26995.47-2u

Then equate the two equations

-37776.44-u=-26995.47-2u

u=10781

6 0
3 years ago
Ana is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Ana
Virty [35]

Answer:

Sentence 2 is right.

Explanation:

Since Ana is doing the training in which three skills are taught. So it is for sure that if she spends an hour for swimming, that hour cannot be utilized for acquiring other skills such as biking or running. So she has to make a choice and while making a choice she has to forgive other option. That is opportunity cost for her, the next best alternative forgone

7 0
3 years ago
Macroeconomic equilibrium occurs where A. total​ production, or​ GDP, equals total planned investment. B. the unemployment rate
sammy [17]

Answer: Option C

Explanation: In simple words, macroeconomics refers to that branch of economics which studies the economy as a whole.

The equilibrium in macroeconomic aspect refers to a situation when the aggregate demand of an economy equals its aggregate supply in the market.

The demand generates from the expenditure and the supply generates from the production.

Hence from the above we can conclude that the correct option is C.

4 0
3 years ago
Northwest Iron and Steel is considering getting involved in electronic commerce. A modest e-commerce package is available for $3
djverab [1.8K]

Answer:

$8,693

Explanation:

Effective annual interets rate: AI = (1+i/m)^n - 1

i = 3*2=6%, m = 26

AI = [1+6%/26]^26 - 1

AI = 1.0617 - 1

AI = 0.0617

Let semi annual income be $X. So, present value of four semiannual income will be aggregated to get principal invetsed money of $30,000

30,000 = ∑[X/1.0617^n}

30,000 = 3.451 * X

X = 8693.132425383947

X = $8,693

Therefore, firm have to earn $8,693 after every 6 months at an interest rate of 3% per week to recover $30,000 initial investment in 2 years

3 0
2 years ago
Keithomp, a company that manufactures and exports candies, sells different flavors of candy depending on the taste preferences o
qwelly [4]

Answer: Option B  

                                                                         

Explanation:  In simple words, geographic departmentalization refers to the  process under which an organisation separates its market operations on the basis of the geography such as country, state or district etc.

In the given case, company has separated its operations on the basis of different preferences of different countries.

Hence from the above we can conclude that the correct option is B .

8 0
3 years ago
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