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Readme [11.4K]
3 years ago
10

The method of analyzing capital investment proposals that divides the average annual income by the initial investment is:a.accou

nting rate of return method b.cash payback method c.internal rate of return method d.net present value method
Business
2 answers:
Leno4ka [110]3 years ago
6 0

Answer:

A. Accounting rate of return method

Explanation:

Accounting rate of return method (ARR) is used to express the expected rate of return on an investment. It describes assets as compared to initial investment cost. A pitfall to the ARR method is that it doesnt consider cash flow or the time value of money.

Mathematically, it is calculated as

ARR = Average annual income/initial investment

Where

ARR = Accounting rate of return.

ARR helps us in determining the profitability of an investment.

iren [92.7K]3 years ago
4 0

Answer: Accounting rate of return

Explanation:

The accounting rate of return is the percentage rate of return that is expected on an asset or investment as compared to the initial investment cost of the investment.

In an accounting rate of return, the average revenue from an asset.is divided by the company's initial investment in order to derive the ratio or the return that can be gotten over the lifetime of the investment or asset. The accounting rate of return does not consider cash flows or the time value of money.

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If a company has discriminated against minorities in the past, should it be required to give priority to minority applicants tod
Leya [2.2K]

Answer:

The description as per the given statement is summarized in the below segment.

Explanation:

  • There should priorities immigrants, although it has its inherent consequences since it damages the morality of all other project teams and thereby discourages them.
  • This would also dissuade customer prejudice from purchasing the merchandise of the company and then so this might not be beneficial to priorities it.
3 0
3 years ago
Johanna Pye is a hair stylist at Mamon Salon. The salon's policy states that stylists receive 40 percent of the revenue they gen
IRINA_888 [86]

Answer:

Business diversion

Explanation:

The above scenario is an example of business diversion type of scheme  whereby Johanna diverted her employer new client in order to generate her personal income, and it happens without the knowledge of her boss

6 0
3 years ago
Red Sun Rising just paid a dividend of $2.58 per share. The company said that it will increase the dividend by 20 percent and 15
vladimir1956 [14]

Assuming  the required return is 12 percent, the stock price today is $40.61.

Given:

Dividend=$2.58 per share

Increase in Dividend=20% and 15%

Number of year=2 years

Increase in Annual Dividend=3.6%

Required return=12%

P2=Stock price today

Now let calculate the stock price today

P2 = [$2.58(1+0.20)]/(1+.12) + [$2.58(1+.20)(1+.15)]/(1+.12)^2 + {[$2.58(1+.20)(1+.15)(1+.036)]/(0.12 − 0.036)}/(1+.12)^2

P2 = [$2.58(1.20)]/1.12 + [$2.58(1.20)(1.15)]/1.12^2 + {[$2.58(1.20)(1.15)(1.036)]/(0.12 − 0.036)}/1.12^2

P2=($3.096/1.12)+ ($3.5604/1.2544)+ [($3.68857/0.084)/1.2544]

P2=$2.7643+$2.838329+($43.91155/1.2544)

P2=$2.7643+$2.838329+$35.0060

P2=$40.61

Inconclusion assuming the required return is 12 percent, the stock price today is $40.61.

Learn more here:

brainly.com/question/24314972

7 0
3 years ago
There are two goods, apples and oranges, in a country. If the relative price of apples (in terms of oranges) is 4 and the opport
tino4ka555 [31]

Answer:

The workers will only produce oranges.

Explanation:

'Opportunity cost' is an important concept which shows the relationship between choice and scarcity. For example: One can spend money and time on one thing at a time but loses the opportunity do perform the other things, which would be his opportunity cost. Like you take a vacation for the money you have but the opportunity cost is not having a new car.

Relative price is the price of one commodity in terms of another. In the given situation, opportunity cost of an apple is 3 oranges and relative price of apple is 3, so the workers will produce only oranges, as it will be more profitable.

7 0
3 years ago
A customers calls her broker to discuss her account. The broker recommends that the customer buy 500 shares of DEF stock. The cu
KIM [24]

Answer:

A. <u>Market Order</u>

Explanation:

In a market order, the securities are bought and sold immediately at the current market price prevailing at that time of the day.

Under this, order size is entered such as quantity of stock, the action to be taken i.e buy or sell and no buying/selling rate is mentioned, rather "market" option is checked.

Such market price keeps fluctuating every every moment so the order would be completed at that price which prevailed at that exact moment.

In the given case, the broker upon instructions of the client immediately got the order executed of 500 shares in less than a minute. This is the case of market order wherein the order was executed at current market price.

3 0
3 years ago
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