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mamaluj [8]
3 years ago
7

The capital budgeting process is comprehensive and is based on certain assumptions, models, and benchmarks. This process often b

egins with a project analysis. Generally, the first step in a capital budgeting project analysis—which occurs before any evaluation method is applied—involves estimating the ________?
A- Revenues from all new projectsB- Project's expected cash flowsC- Company's net income
Business
1 answer:
anzhelika [568]3 years ago
7 0

Answer:

The correct answer is letter "B": Project's expected cash flows.

Explanation:

Capital budgeting is a planning method used by businesses to decide which new projects to invest in and how to fund them. The types of projects evaluated in capital budgeting include large expenditures such as the <em>construction of a new factory, the acquisition of new equipment, the development of a new product </em>or <em>the purchasing of another company</em>.

<em>In the beginning, it is crucial to </em>estimate the firm's cash flows<em> to determine how much funds will be available for investing and covering expenses. If insufficient, the company must look for forms of raising capital such as issuing investment vehicles such as stock or bonds or relying on financial institutions through loans.</em>

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The project involves an initial investment of $100,000 in equipment that falls in the 3-year MACRS class and has an estimated sa
nlexa [21]

Answer:

NPV -87,259.64

Explanation:

P0   -100,000

Salvage Value 15,000

operating working capital realese 5,000

We will calculate the present value of the salvage value and the working capital realese

\frac{Principal}{(1 + rate)^{time} } = PV

\frac{5,000}{(1 + 0.12)^{4} } = PV

3,177.59

\frac{15,000}{(1 + 0.12)^{4} } = PV

9,532.77

NPV = investment - cash flow discounted

NPV = -100,000 + 9,532.77 + 3,177.59 = -87,259.64

3 0
3 years ago
A key element of customer relationship management is to: Group of answer choices keep the price of goods as low as possible. dev
juin [17]

A key element of customer relationship management is to: develop a strategy to achieve the largest possible market share.

  • A company or other organization manages its relationships with consumers using a process called customer relationship management, which often involves studying a lot of data through data analysis.
  • CRM systems come in three basic categories: operational, analytical, and collaborative. Here's how to pick the best one to give your clients better conversational customer experiences.
  • Customer retention, loyalty, profitability, and satisfaction are the four pillars of customer relationship management.
  • A tool known as customer relationship management (CRM) is used to handle all interactions and relationships between your business and its clients. Simple is the aim: strengthen commercial ties. CRM systems assist businesses in maintaining contact with clients, streamlining procedures, and boosting profitability.

Thus this is the answer.

To learn more about CRM, refer:brainly.com/question/27993518

#SPJ4

3 0
2 years ago
Baxter Company produces​ children's wiffle ball sets using a threeminusstep sequential process that includes​ molding, coloring
anyanavicka [17]

Answer:

C) WIP InventoryWIP Inventory-Finishing

Explanation:

Cost of WIP is transferred through Molding to Coloring to the last process of the production finishing. After completing the finishing the balls are ready and the cost is transferred from WIP InventoryWIP Inventory-Finishing to Finished goods Inventory. So, the correct answer is C) WIP InventoryWIP Inventory-Finishing.

5 0
3 years ago
If the central bank targets a monetary​ aggregate, it is likely to lose control over the interest rate because A. of fluctuation
Rom4ik [11]

Answer:

The correct answer is B. of fluctuations in the demand for reserves.

Explanation:

The management of the interest rate is perhaps one of the areas of economic policy that has raised the most controversy among policymakers. Much of it comes from both the interpretation of the role that the interest rate plays in macroeconomic adjustment, and the real possibility of achieving effective control over it.

Regarding the role of the interest rate, there are opposing positions about the influence that this variable may have on that of  termination of savings investment. Thus, for example, from a Keynesian perspective, a weak relationship is raised between saving the interest rate, since it depends primarily on the level of income, while great importance is attached to this variable as a determinant of investment. Under this scheme, control over the interest rate can be justified since it would have the advantage of stimulating economic activity through greater investment, without significantly affecting savings levels.

6 0
3 years ago
Today, sandra will present a report to her class on the top ten income-producing countries in the world. most of the countries t
Radda [10]

<span>The world’s richest countries are mostly found in Europe. Therefore Sandra will be presenting most of the countries located in <u>“Europe”</u>.</span>

<span>One possible factor why Europe is so rich is because of the numerous wars it encountered.  Aside from the wealth obtained in the conquest, wars also lead to advancement in technology. </span>

3 0
3 years ago
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