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3 years ago

If Management was not concerned with the time value of money, from which two capital budgeting methods should they choose?

Business

1 answer:

Neporo4naja [7]3 years ago

7 0

Answer:

ARR or Payback

Explanation:

Here are the options to this question

Multiple Choice

BET or IRR

ARR or Payback

NPV or IRR

NPV or Payback

BET or NPV

Accounting rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = Amount invested / cash flow

The NPV and IRR considers the time value of money by discounting the cash flow at discount rate.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

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eduard

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4 0

3 years ago

Which of the following techniques is used by the nielsen company to measure ratings? A- set meters, B- Tentpoling, C- Syndicatio

liq [111]

Answer:

A. Set meters is the correct answer.

Explanation:

4 0

3 years ago

Terms of a lease agreement and related facts were:

Feliz [49]

Answer:

1) January 1, 2018, asset leased

Dr Lease receivable 550,000

Cr Equipment 550,000

January 1, incremental costs associated with lease transaction

Dr Lease receivable 6,652

Cr Cash 6,652

January 1, 2018, first lease payment collected

Dr Cash 200,000

Cr Lease receivable 200,000

2) to calculate the effective rate we can use the present value of an annuity due formula

PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326

Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.

3) December 31, 2018, interest receivable on lease contract

Dr Interest receivable 28,532

Cr Interest revenue 28,532

interest receivable = ($556,652 / $200,000) x 8% = $28,532

5 0

3 years ago

1. Do you think it is a good idea to have employers withhold

Alina [70]

Answer:

No,

Explanation:

The tax withholding system is something that most of us take for granted, but the concerned citizens, politicians and economists who have analyzed it have many criticisms of the system.

Taxpayers have no idea how much they pay and are apathetic about tax rates

If taxpayers had to make one large payment, they would know exactly how much they were forking over for federal taxes, Social Security taxes, Medicare taxes and state taxes. Since the money is taken gradually, many people never pay attention to the full amount, which makes it easier for high tax rates to persist and for the government to increase tax rates. For example, the state of California in 2009 decided to use the tax withholding system to take a large, interest-free loan from its taxpayers. It increased the withholding tax by 10%, and even journalists didn't seem to notice until the days before the rate hike was implemented. The government says it will refund the borrowed money in April.

5 0

3 years ago

Find the Houston's average monthly expenditure.

Fofino [41]

Answer:

2918.25

Explanation:

8 0

2 years ago