The time value of money is explicitly considered in Net present value (NPV) capital budgeting methods.
The process of deciding whether to invest in capital assets is known as capital budgeting. Companies can more efficiently assess and prioritize which projects, programs, and other investment assets could be the most financially advantageous in the long-term by integrating strategically planned capital budgeting into their financial processes. Internal Rate of Return, Net Present Value, Profitability Index, Accounting Rate of Return, and Payback Period are the five capital budgeting methodologies.
An investment opportunity's whole value is intended to be captured by the financial term known as Net Present Value (NPV). The goal of NPV is to forecast all potential future cash inflows and outflows related to an investment, discount each one to the present, and then tally them all up.
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Answer:
1.
1 Jan 2019
Cash 2100000 Dr
Bonds Payable 2100000 Cr
2.
30 June 2019
Interest expense 73500 Dr
Cash 73500 Cr
31 Dec 2019
Interest expense 73500 Dr
Cash 73500 Cr
3.
31 Dec 2022
Bonds Payable 2100000 Dr
Cash 2100000 Cr
Explanation:
1.
The bonds are assumed to be issued at par value as the market interest rate is not given and is assumed to be the same as the interest rate on bonds of 7%. The issuance of bonds on par is recorded as a debit to the cash received against the bonds and a credit to the bonds payable account.
2.
The semi annual interest payment on bond is,
Bond interest-semi annual = 2100000 * 0.07 * 6/12 = 73500
The interest rate given is the annual interest rate of 7%. That is why we multiply it with 6/12 to get the semi annual interest.
3.
The disposal of bonds will be a reversal of the issuance entry. The bonds payable will be debited by the par value amount and the cash will be credited.
Answer:
cannot be determined
Explanation:
The computation of the marginal revenue product of labor is given below;
we know that
Marginal revenue product = MR × MP
Here
MP= 15
But MR is not given.
So without MR, the marginal revenue product cant be determined
Therefore it is cannot be determined
Hence, the same is relevant
Answer:
$1,335.67 per front foot
Explanation:
First we must determine the total footage of the property = 5.5 acres x 43,560 feet² per acre = 239,580 ft²
Now we divide the total footage by the number of feet deep = 239,580 ft² / 400 feet deep = 598.95 front feet
Finally we divide $800,000 / 598.95 front feet = $1,335.67 per front foot
According to business management roles, the "financial manager" of a firm uses information from the sales budget and various cost budgets to develop a forecast of net earnings for the planning period.
This is because the financial managers are the individuals in a firm whose role or responsibility is to ensure that the organization is functioning well financially.
Their roles usually involve providing the financial guidance, developing financial reports, making direct investment activities, etc.
Hence, in this case, it is concluded that the correct answer is "Financial Manager."
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