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gtnhenbr [62]
3 years ago
10

​Ashton is working on a project at PowerTek Inc., a well-known multinational corporation. He is using capital budgeting to estim

ate the project's future cash flows. He finds that the present value of the estimated future cash flows is greater than the cost of the project. How likely is he to gain approval from the board? Group of answer choices
Business
1 answer:
Sholpan [36]3 years ago
3 0

Answer: A. He will quite certainly gain approval since the project has a positive net present value.

Explanation:

The options are:

A. He will quite certainly gain approval since the project has a positive net present value.

B. Approval is probable but not likely as he failed to account for the time value of money.

C. He will not gain approval as he failed to consider whether the project is leading edge or not.

D. Approval is probable but not likely as the project has been constructed on estimates instead of facts.

Capital budgeting is used to know whether the long term investment for a particular organization's is actually worth investing in or not by the company.

Based on the scenario in the question, since the present value of the estimated future cash flows is greater than the cost of the project, Ashton will quite certainly gain approval since the project has a positive net present value.

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The investment timing decision relates to: Group of answer choices how frequently the cash flows of a project occur. how long th
AveGali [126]

Choosing when to start a project is related to the investment timing decision.

<h3>Is an investment's timing crucial?</h3>

The following are some advantages of market timing strategy:

  • Market timing is utilized to increase earnings and counteract the dangers involved with small gains.
  • When it comes to investments, the basic risk-return trade off holds true: the greater the risk, the greater the gain.
<h3>What does the term "investment decision" mean?</h3>

The choice and acquisition of the long-term and short-term assets in which funds will be invested by the organization are referred to as investment decisions.

<h3>What is a timing option for investments?</h3>

The investment-timing option, which is the choice to delay rather than immediately adopt or reject a capital budgeting project, can dramatically boost a project's value when interest rates are unpredictable.

<h3>What is an example of an investment decision?</h3>
  •  Decisions on investments can be made for the long- or short-term.
  • A capital budgeting decision is another name for a long-term investment choice. Long-term financial commitments are necessary.
  • A new machine purchase to replace an older one, the purchase of a new fixed asset, the establishment of a new branch, etc. are a few examples.

learn more about investment decision here

<u>brainly.com/question/24246300</u>

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5 0
2 years ago
The Mykari Publishing House invested in buying high-end machinery that allowed its newspapers to be printed at twice the speed o
Brums [2.3K]

Answer: above-average profits

Explanation: In the given case, while making the change in the operations the managements anticipated an increase in profit by 125 max. These types of anticipations are done by the managers on the basis of past records or the current existing trends.

Usually under such situations the management tries to take average of the anticipated figures so that expectations of take holders would not get high too much.

Hence the increase of 19% depicts that the profit increased by more than the average level as anticipated by the managers.

8 0
2 years ago
The two managers are interested in hiring one of the applicants for the position. The process by which the managers determine th
kirill115 [55]

The two managers are interested in hiring one of the applicants for the position. The process by which the managers determine the relative qualifications of job applicants and their potential for performing well in a particular job is known as Selection.

The recruiting and selection process has quality components in each phase, from the initial choice to fill a post to the successful employee start. We hope you will gain something from the information offered at each stage of the process as you are one of the people in charge of ensuring a high-quality result. A fantastic employee is more likely to be hired at the conclusion of the process thanks to the information's important advice and suggestions for incorporating quality into EVERY step of the process.

Learn more about selection process here brainly.com/question/898302

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8 0
2 years ago
Which industry did the interstate commerce act primarily affect?
Natasha2012 [34]
<span>The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be "reasonable and just," but did not empower the government to fix specific rates.</span>
5 0
3 years ago
Brand A automobile tires make less contact with the road than Brand B, lowering friction and allowing them to reduce fuel consum
Degger [83]

Answer:

The money that will be saved using brand A tire compared to brand B is 0.004 x 3 = $0.012

Explanation:

For brand A automobile tire,

200 gallons of fuel is conserved over 50000miles of driving.

In 1mile, the numbers of gallons that will be conserved is: 200/50000 = 0.004gallons.

If a gallon of fuel cost $3.00

Then, the money Brand A save the customer per mile driven, compared to Brand B will be 0.004 x 3 = $0.012

6 0
3 years ago
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