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rewona [7]
3 years ago
5

If any, which of the following statements is FALSE?A. NPV measures the value created by taking on an investmentB. NPV indicates

how much a project will improve owner wealthC. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investmentD. None of the above statements is false
Business
1 answer:
dedylja [7]3 years ago
3 0

Answer:

C. NPV is the discounted present value of a project's expected future accounting net income at the required return, subtracting the initial investment.

Explanation:

NPV means Net Present Value, this is calculated by computing the present value of cash returns and not the accounting income, as accounting income takes in account non cash items also, although while computing returns the non cash transactions are not considered.

Therefore the chosen statement which states about accounting income less initial investment is false as even in case the project requires additional mid term investment then that is also considered.

Thus, false statement is

Statement C

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When a government seizes an investment of a foreign investor but some reimbursement for the assets is made, the government follo
Sladkaya [172]

Answer:

(B)  expropriation.

Explanation:

Expropriation is the demonstration of an administration taking exclusive property against the desires of the proprietors, apparently to be utilized for the advantage the general open. In the United States, properties are regularly dispossessed so as to manufacture expressways, railways, air terminals, or other foundation ventures.  

It is the seizure of private property by an open organization for a reason regarded to be in the open intrigue

6 0
3 years ago
Two individuals at a retail store work the same cash register. You evaluate this situation as Select one: a. Supporting internal
spin [16.1K]

Answer:

B. A violation of establishment of responsibility

Explanation:

They both should have established something different to work on but for both of them to work the same cash register, it is a violation of establishment of responsibility

5 0
3 years ago
Which item below is an incorrect statement about the difference between the discount rate and the federal funds rate? a) The fed
mestny [16]

Answer:

a) The federal funds rate has a higher interest rate than the discount rate to encourage borrowing

Explanation:

The Feds fund rate is the rate at which banks borrow from each other usually overnight, while the discount rate is the interest rate charged by the Fed to commercial banks for borrowing directly from the Fed.

These borrowings help the commercial banks meet up their liquidity requirements.

The discount rate is higher than the Fed funds rate. This is to encourage banks to borrow from each other instead of borrowing directly from the Federal Reserve.

The Fed fund rate also tends to affect the prime lending rate (rate at which banks lend money to their clients).

So the statement - The federal funds rate has a higher interest rate than the discount rate to encourage borrowing. Is not correct

5 0
3 years ago
Two ways in which entrepreneurship can help to combat unemployment and improve the economy of south africa
zmey [24]

<span>One is through innovation. New innovation meant new jobs for the nation. One example is Bheki Kunene, a young entrepreneur of South Africa. At age 27, he founded Mind Trix Media providing jobs and a profit. Next is it improves economy by being able to partner with big companies in the other countries.</span>

5 0
3 years ago
A stock currently sells for $25 per share and pays $0.24 per year in dividends. What is an investor's valuation of this stock if
asambeis [7]

Answer:

$26.30

Explanation:

Calculation to determine the investor's valuation of this stock

Using this formula

Investor's valuation of the stock = [Dividend / (1 + rate)] + [Selling price / (1 + rate)]

Let plug in the formula

Investor's valuation of the stock = [$0.24 / (1 + 0.15)] + [$30 / (1 + 0.15)]

Investor's valuation of the stock = $0.21 + $26.09

Investor's valuation of the stock = $26.30

Therefore the investor's valuation of this stock will be $26.30

6 0
3 years ago
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