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Gennadij [26K]
3 years ago
10

The primary advantages of the average rate of return method are its ease of computation and the fact that a.rankings of proposal

s are necessary b.it is especially useful to managers whose primary concern is liquidity c.there is less possibility of loss from changes in economic conditions and obsolescence when the commitment is short term d.it emphasizes the amount of income earned over the life of the proposal
Business
1 answer:
Virty [35]3 years ago
6 0

Answer: it emphasizes the amount of income earned over the life of the proposal(D)

Explanation:

The average rate of return is the average yearly amount of cash flow that is generated over the life of an investment. The average rate of return rate is calculated by adding all expected cash flows and then dividing by the number of years which the investment is projected to last for.

The average rate of return allows for a easy comparison between several types of investments. The average rate of return is also easy to compute as it takes note of the amount of income that is earned over the life of the proposal.

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You expect to receive year-end bonuses of $8,000 at the end of this year, $16,000 at the end of year 4, $20,000 at the end of ye
yulyashka [42]

Answer:

Total PV= $46,728.79

Explanation:

Giving the following information:

Cash flow:

Cf1= $8,000

Cf4= $16,000

Cf8= $20,000

Cf10= $25,000

Discount rate= 6%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

Cf1= 8,000/(1.06^1)= 7,547.17

Cf4= 16,000/(1.06^4)= 12,673.50

Cf8= 20,000/(1.06^8)= 12,548.25

Cf10= 25,000/(1.06^10)= 13,959.87

Total PV= $46,728.79

7 0
3 years ago
A gain or loss may be incurred if the sale or trade of an asset is greater than or less than the __________ value of the asset.
posledela
Your answer will be a
6 0
3 years ago
Which of the following is NOT considered to be one of the main revenue centers at most financial institutions?
Aleks [24]

Answer:

money and credit markets,investments,financial management

Explanation:

Finance consists of three interrelated areas: (1) money and credit markets, which deals with the securities markets and financial institutions; (2) investments, which focuses on the decisions made by both individuals and institutional investors; and (3) financial management, which involves decisions made within the ...

7 0
2 years ago
Use your knowledge of the roles people assume on teams to complete the sentence.
kakasveta [241]

Answer:

d. socioemotional role

Explanation:

As the team works together, Carol plays a <u>socioemotional role</u>, diffusing conflicts and helping everyone feel welcome to contribute ideas.

8 0
3 years ago
Read 2 more answers
Phoenix Agency leases office space for $7,700 per month. On January 3, Phoenix incurs $105,600 to improve the leased office spac
nadezda [96]

Answer:

$13,200 per year

Explanation:

Amount incurred to improve the office space = $

Improvement expected to yield benefit = 10 years

Remaining life on it's lease = 8 years

Since the office space is not going to remain with Phoenix after the lease period, it means that the improvement expenses will be expensed over the remaining lease period I.e 8 years.

Therefore, the amount of expense that should be recorded the first year related to improvements can be calculated as;

= Amount incurred to improve the office space ÷ remaining life on its lease

= $105,600 ÷ 8

= $13,200 per year

7 0
3 years ago
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