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
7nadin3 [17]
3 years ago
8

ignoring differences in the useful lives of investments when evaluating capital expenditure alternatives can distort present val

ue analysis.
Business
1 answer:
vodka [1.7K]3 years ago
6 0

Answer:

Yes, it does.

Explanation:

It definitely impacts the present value analysis. If we are evaluating two proposals and we ignore the useful lives of the investments, then

  • The present values of the investment proposals will be inaccurate.
  • The cash flows might be inaccurate.
  • The discount factor to be used will also be inaccurate.
  • The overall results will be misleading.
  • The tax credits and balancing allowances and charges will also be inaccurate.
You might be interested in
Chance to win 50 points
Elenna [48]

Answer:

2nd place

Explanation:

I feel like this is the right answer, I'm just guessing.

8 0
3 years ago
Read 2 more answers
What would be the consequences if managers of a firm evaluated a project based on its actual dollar cash flows, but used a real
matrenka [14]

Answer:

Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.

For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.

Initial outlay $100

NCF year 1 = $40

NCF year 2 = $40

NCF year 3 = $40

Using the real discount rate, the NPV = $8.93

Using the nominal discount rate, the NPV = -$0.53

6 0
3 years ago
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $396,000 of indirect co
Viktor [21]

Answer:

(A) $144,000.

Explanation:

For computing the indirect costs allocated to the Commercial Department first we have to compute the per unit cost which is shown below:

Per unit cost = (Allocated department overhead indirect cost) ÷ (total number of direct labor hours)

=  $396,000 ÷ 22,000

= $18

The total number of direct labor hours = Consumer + commercial

                                                                = 14,000 + 8,000

                                                                = 22,000

Now the indirect cost equal to

= Per unit cost × Commercial direct labor hours

= $18 × 8,000

= $144,000

4 0
3 years ago
The amortization of a premium on bonds payable: A) has no effect on the cash payments for interest reported in the operating act
Aleks [24]

Answer:

A) has no effect on the cash payments for interest reported in the operating activities section of the statement of cash flows

Explanation:

The amortization is an accounting method to match the difference in the nominal interest rate of bonds with the real interest rate the bond is yielding.

Th cash flow statment will just recognize the cash proceeds, which are calculate base on the face value, regardless of the premium or discount in the bond.

6 0
3 years ago
Business ethics are not divorced from personal ethics, which are generally accepted principles of right and wrong goverming the
777dan777 [17]

Personal ethics

Explanation:

Personal ethics applies to the ethics that a person who identifies with in respect to the people and circumstances that they contend with in everyday life. Professional ethics means the ethics a person has to adhere to in relation to their professional relationships and business transactions.

The principles of personal ethics are:

  • Concern and respect for the autonomy of others.
  • Honesty and the willingness to comply with the law.
  • Fairness and the ability not to take undue advantage of others.

Ethics also shield members from harmful actions, such as success, money and power. They also help individuals gain a sense of truth and meaning of life. Unless you have some idea of knowing what is right and what is wrong people have no way to live and feel free to do whatever they want.

An ethical culture community offers a culture that supports the ethical conduct of the organization's members. Unethical conduct is any activity of a member who does not comply with the standards established by the organization's culture.

7 0
4 years ago
Read 2 more answers
Other questions:
  • The positive principle, the constructionist principle, and the simultaneity principle are principles of:
    11·1 answer
  • Before you begin writing on a job application you should _____.
    12·1 answer
  • Which of these banking services allows your paycheck to be transmitted electronically to your bank?
    12·1 answer
  • Crocetti Corporation makes one product and has provided the following information to help prepare the master budget for the next
    5·1 answer
  • Which is an advantage of doing an apprenticeship program
    11·1 answer
  • Assume the company is considering investing in a new machine that will increase its fixed costs by $42,500 per year and decrease
    15·1 answer
  • The black shoe company produces its famous madison shoe, which sell for $60m per pair, the operating income for 2020 is as follo
    13·1 answer
  • Department and shift teams in many hospitals have brief stand-up daily huddles during which team members share information and e
    6·1 answer
  • Choose those characteristics that best describe a command system. Multiple select question. The division of output between capit
    12·1 answer
  • cash inflows and outflows involving stockholders and creditors are classified on the statement of cash flows as activities.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!