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lbvjy [14]
3 years ago
5

Boss asks you to explain the difference between the Cost of Capital and DiscountRate in a multi-year Net Present Value analysis

of a single project. You correctly point out that typically…
Business
1 answer:
babymother [125]3 years ago
6 0

Answer:

Cost of capital is the overall rate of return expected by investors while the discount rate is the minimum rate of return used for appraising a project in order to obtain the net present value.

Explanation:

Cost of capital is calculated as cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure plus cost of preferred stock multiplied by the proportion of preferred stock in the capital structure.

Discount rate is the rate used for determining the attractiveness of a project. This rate is used for determining the net present value of a project.

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Issued a cheque of rs. 39000 to Saurya stores in full settlement. <br>journal entry​
Semmy [17]

Answer:

When issuing a check to a creditor as is being done here, you need to debit the creditors account (Accounts Payable) to show that you are paying off the debt.

You also need to credit cash because a credit will show that cash was used to pay for something and so has reduced.

Date               Account Title                                                  Debit            Credit

XX-XX-XXX   Accounts Payable - Saurya Stores             Rs. 39,000

                       Cash                                                                                Rs. 39,000

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2 years ago
What degree do you need for a cosmetologist
Stella [2.4K]
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2 years ago
Mr. Morgan earns $38,000 a year as a salesperson and a 5% commission on all his sales. He has a mortgage of $910 a month and pay
Semmy [17]

Answer:

the mortgage.

Explanation:

5 0
3 years ago
Read 2 more answers
Which of the following is true of assigning costs to cost objects? a.Assigning costs to cost objects can be accomplished in a nu
podryga [215]

Answer:

A and B.

Explanation:

Understand  cost classification used for assigning costs to cost objects can be divided in direct costs and indirect costs.

Direct costs are those who can be easily and conveniently traced to a unit of product or other cost object. Examples are direct material and labor.

Indirect costs are those who cannot be easily and conveniently traced to a unit of product or other cost object. Example manufacturing overhead.

The common costs are the indirect costs incurred in support a number of cost objects. These costs cannot be traced to any individual cost object.

Determining cost tracing and allocation is more art than science, as it's difficult to trace costs with 100 percent accuracy.

Tracing costs becomes even more difficult when a cost goes toward producing multiple goods or services.

3 0
3 years ago
The distinguishing feature of economic capital (as opposed to financial capital, like money) is that it is:__________. a. expens
seraphim [82]

Answer:

C. Productive

Explanation:

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3 years ago
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