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2 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]2 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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In 2011 oil production in Libya was interrupted by political unrest. At the same time, the demand for oil by China continued to

kondaur [170]

Answer:

As a result of the political unrest in Libya, the supply of oil would fall, As a result the supply curve would shift to the left. This would lead to fall in equilibrium quantity and a rise in price.

The increased demand for oil would shift the demand curve to the right. The equilibrium price and quantity would increase

Taking these two effects together, equilibrium price would rise and there would be an indeterminate effect on equilibrium quantity

Please check the attached image for a graph showing these shifts

b. As a result of the change in supply, supply would increase. This would increase equilibrium quantity and equilibrium price would fall. in addition with the increase in demand for oil, equilibrium quantity would rise and there would be an indeterminate effect on equilibrium quantity

Explanation:

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2 years ago

When women and minorities hit an invisible barrier within an organization that, because of discrimination, prevents individuals

gregori [183]

This invisible barrier is called the glass ceiling. There are multiple factors that enable such a thing, including (but not limited to) prejudices against women in the work place, lack of recruitment of women to certain types of jobs that are historically performed by men (i.e. science, engineering, etc), and lack of mentoring on the job.

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3 years ago

Read 2 more answers

Diminishing returns set in after the ________ truck is purchased.

Nataly_w [17]

The answer in the space provided is second. The diminishing returns set happens when there is an increase with the input variable and by this, it will likely cause the output to decrease as the marginal increase and in the same time, other inputs remains to be in constant.

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2 years ago

On January 1, 2018, David Mest Communications granted restricted stock units (RSUs) representing 25 million of its $1 par common

natima [27]

Answer:

See the explanation below.

Explanation:

Total compensation expenses = 25 million * 15 = $375 million

1. On December 31, 2018.

Compensation expenses = $375 million / 3 = $125 million

Journal entries will be as follows:

Details Dr ($'Million) Cr ($'Million)

Compensation expenses 125

Paid-in Capital - Restricted stock 125

To record the compensation expenses for 2018.

2. On December 31, 2019.

Compensation expenses = [$375 million * 96% * (2/3)] - $125 million = $115 million

Journal entries will be as follows:

Details Dr ($'Million) Cr ($'Million)

Compensation expenses 115

Paid-in Capital - Restricted stock 115

To record the compensation expenses for 2019.

3. On December 31, 2020.

Compensation expenses = ($375 million * 96%) - $125 million - $115 million = $120 million

Journal entries will be as follows:

Details Dr ($'Million) Cr ($'Million)

Compensation expenses 120

Paid-in Capital - Restricted stock 120

To record the compensation expenses for 2020.

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3 years ago

Eric, a ghost writer, conducted market research and discovered a niche market in writing scripts for corporate online videos. He

Lerok [7]

Answer: What is the best way to get his service to his target customers

Explanation:

Market research is the process of determining how viable a product will be after research has been conducted in the market. This is vital in getting opinions of customers.

Marketing mix are the marketing tools which an organization can use in order to pursue its marketing objectives.

The question that should be asked about the marketing mix placement is "What is the best way to get his service to his target customers". This is vital in knowing the best method to use in making the product available to the customers.

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2 years ago