1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Harrizon [31]
3 years ago
5

Which of the following is a disadvantage of using the net present value method of evaluating an investment proposal? a. It consi

ders the cash flows of the investment. b. It considers the time value of money. c. It can rank projects with equal lives, using the present value index. d. It assumes cash flows can be reinvested at the minimum desired rate of return.
Business
1 answer:
olga55 [171]3 years ago
4 0

Answer:

The disadvantage of using the net present value method of evaluating an investment proposal is option D) it assumes that cash flows can be reinvested at the minimum desired rate of return.

Explanation:

The net present value (NPV) is used to evaluate how a profitable a project is by taking out how much present value of cash inflows and outflows differ over a defined period of time. Now by using the definition alone it is very clear that the options a) and c) are correct, and option b) represents the most important function of this concept as by considering time value of money it tells that the money available to us in present is worth more than the same amount in future because on this present sum we can earn interest.

So from the above explanation we can say that the first three options are correct and the only disadvantage of using net present value is that here we are reinvesting cash flows at minimum rate of return.

You might be interested in
Massage Envy offers massage services on a subscription basis, so it targets consumers that desire to get multiple treatments per
Anton [14]

Answer:

C. usage rate.

Explanation:

As in the question,  it is mentioned that Massage Envy offers massage services based on a subscription basis with a view to targeting the consumers that they get more or multiple treatments per month

So  Massage Envy target the market segment via usage rate as it depicts the average sales per day so that they get to know how much they earned the revenue by offering multiple treatments to clients

hence, the correct option is C. usage rate

5 0
3 years ago
Christopher works for Ocean Media Inc., a large corporation. His work requires him to travel extensively and, as a result, he sp
GREYUIT [131]

Answer:

A. moral hazard

Explanation:

Based on the information provided within the question it can be said that this scenario is perfectly exemplifying the term known as a moral hazard. This refers to when an individual takes more risks because someone else is bearing the costs. Such as in this scenario, Christopher is an employee and should be working on company tasks but instead works on his own projects because the company cannot check up on him, which is morally wrong and he can get fired for it.

3 0
2 years ago
Hannah Township has a General Fund, two Capital Projects Funds, one Permanent Fund, two Enterprise Funds, two Internal Service F
NeTakaya

Answer:

c. Four (4)

Explanation:

5 0
3 years ago
____ is (are) the earnings of a corporation that are distributed to the stockholders. interest dividends retained earnings disco
Marrrta [24]
Dividends is <span>the earnings of a corporation that are distributed to the stockholders. 
To put it simply, dividend is a part of the profit that will be given to everyone that held company's stock which amount will be depended on how much stocks that the owner held.</span>
7 0
2 years ago
Which of the following is a question that the auditor will answer when sampling?a. Which population and sampling unit should be
Ierofanga [76]

Answer:

E. All of the above.

8 0
3 years ago
Other questions:
  • Group Policy is an automated management tool with which you can set a policy once and allow it to apply to all users and compute
    8·1 answer
  • Do you think a person should be fired if it is found that he or she helped employees cheat their company out of overtime once in
    6·1 answer
  • The direct order plan of organizing information will be the most effective when you are writing
    10·1 answer
  • You are torn between two saving accounts where to put your $1,500 in scholarship money for a year until you need it for next yea
    5·1 answer
  • Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts
    12·1 answer
  • Hilton Brews is a company producing instant mixes for all kinds of beverages. It notices that the market for tea has risen due t
    14·1 answer
  • Journalize the following merchandise transactions, using the net method under a perpetual inventory system.
    11·1 answer
  • Far Side Corporation is expected to pay the following dividends over the next four years: $13, $12, $6, and $3. Afterward, the c
    5·1 answer
  • 3.
    8·1 answer
  • How can creating a customer profile help entrepreneurs identify their target market
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!