Two methods of capital investment analysis that incorporate the time value of money are -Net Present Value and Discounted Cash Flow
1- Net Present Value
Net Present Value reduces the expected future cash flows by a specific rate to arrive at their value in today's terms. After subtracting the initial investment cost from the present value of the expected cash flows, it can be determined whether the project is worth pursuing. If the NPV is a positive number, it means it's worth pursuing while a negative NPV means the future cash flows aren't generating enough return to be worth it and cover the initial investment.
2- Discounted Cash Flow
With DCF analysis, the discount rate is typically the rate of return that's considered risk-free and represents the alternative investment of the project. The present value is the value of the expected cash flows in today's dollars by discounting or subtracting the discount rate. If the result or present value of the cash flows is greater than the rate of return from the discount rate, the investment is worth pursuing.
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Answer:
Option "C" is the correct answer to the following statement.
Explanation:
Decision-makers are usually highly skilled in Forecasting Inflation, they educate themselves to get knowledge and skill which will help them to Anticipate inflation slow market rates.
Decision-makers probably expect with a particularly high level of certainty with these forecast many industries change their plans according to inflation.
Answer:
C. Ability to work well with others
Explanation:
Ability to work well with others is a very paramount skill to have when it comes to ideal management. Ability to work well with others involves been able to have a conversation and communicate with understanding, combine with others in areas of project, meetings and other collaborations present as well as actively listening to others and be honest in dealings or collaborations with others. A manager must he able to work well it others as it eases the operations of the employees under him.
Answer:
Only 1
Service Revenue
Explanation:
Dividends are debited against net income after taxes, and increase only if credited. As the dividends are recorded as liability till they are not paid in account dividend payable, but individually dividend account has debit balance.
Insurance Expense, as said all expenses are debited.
Will only increase when it will be debited.
Cash account displays an asset, and all assets have debit balance and therefore, it will increase with debit only and not with credit.
Service Revenue is an income and incomes are credited, therefore, it will increase with every credit.
Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.