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Marianna [84]
3 years ago
15

Net present value: Select one: is the best method of analyzing mutually exclusive projects. is less useful than the internal rat

e of return when comparing different-sized projects. s the easiest method of evaluation for nonfinancial managers. is the easiest method of evaluation for nonfinancial managers.
Business
1 answer:
Leto [7]3 years ago
3 0

Answer:

Is the best method of analyzing mutually exclusive projects.

Explanation:

Net present value is equal to the present value of all the future cash flows of a project, less the initial outlay of project.

Net present value analysis simply concluded about a project to be worth doing when it finds the present value of future cash flows greater than the initial investment and vice versa.

We just have to see which is higher, the present value of future cash flows or the initial investment.

It is assumed that an investment with a positive NPV will be profitable, and an investment with a negative NPV will result in a net loss.

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A firm’s liquidity level decreases when:_______.
katovenus [111]

Answer:

b) inventory is sold on credit.

Explanation:

Liquidity is defined as the a business to use its current assets to settle it's current liabilities.

This is calculated by using the working capital ratio.

Working capital ratio = Current assets ÷ Current liabilities.

Cash and inventory contribute to a business' liquidity.

When inventory is sold on credit, it does not result in immediate increase in cash as payment is in the future. So there is a reduction in the current asset of the company.

A reduction in the numerator of the working capital ratio results in lower value of the ratio (lower liquidity)

5 0
3 years ago
Feel great. smell great," goes the warm, lilting theme song of a television ad for perfume, as the model dances through a field
ira [324]

The likely reason as to why this ad is most likely to work is because of emotional appeals by which they are likely to work well with the social identity products that could be describe and read from the scenario above.

6 0
3 years ago
Publications reporting total return data for an investment should use the recommended reporting period of:______.
Bezzdna [24]

 Publications reporting total return data for investment should use the recommended reporting period of 1 year, 5 years, and the lesser of 10 years of the life of the investment

The definition of investment is an asset that is purchased or invested to build wealth and save money from hard-earned income or capital appreciation. The importance of investment is primarily to gain an additional source of income or to make a profit from the investment over a period of time.

Time deposits are primarily investments in banks. A fixed interest rate is paid and the original investment funds are returned to the depositor at maturity. Example: Mr. B deposited her $1 million in her XY bank. XY Bank pays interest at 10% per annum.

Investments generally fall into three main categories: stocks, bonds, and cash equivalents. Each bucket has different types of investments. Here are six types of investments you can consider for long-term growth and what you need to know about each.

Learn more about investment here

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8 0
1 year ago
William is a single writer (age 35) who recently decided that he needs to save more for retirement. His 2019 AGI before the IRA
Paul [167]

Answer:

The maximum contribution is $3,850

Explanation:

The contribution eliminate isn't pertinent if the single citizen under age 50 doesn't take an interest in the business supported arrangement and most extreme measure of $5,500 can be asserted for charge year 2019.  

As Williams takes an interest in the business supported arrangement and he is under age 50, the IRA contribution will eliminate for money above $63,000 up to $73,000.The most extreme breaking point is $5,500 .

Compute the contribution as follows:

[($66,000 - $63,000)  / ($73,000 - $63,000 )] × 100 = 30%,

Thus, 30% contribution will phase out and 70% of maximum limit is allowed. Therefore, maximum contribution is $5,500 x 70%, i.e. $3,850.

5 0
3 years ago
What is meant by trading on the equity? (b) how would you determine the profitability of trading on the equity? chegg.
aleksklad [387]

Answer:

Trading on equity defines the increase in profit earned by the equity shareholders due to presense to financial charges.

When a company is higher the rate of interest on borrowed funds.so company should option for trading on equity.

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4 0
2 years ago
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