1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
balandron [24]
2 years ago
6

Capital budgeting is a tool that explicitly incorporates the time value of money in decisions involving significant long-term in

vestments.
True / False.
Business
1 answer:
Elena L [17]2 years ago
4 0

Answer: True

Explanation: Capital budgeting is a tool used for evaluating the profitability of long term investments by the company. In the process of capital budgeting, the incremental expected cash inflows are compared with the initial cash outflow of the project using time value of money analysis.

In time value of money analysis the expected cash inflows are discounted back to the present time by using a particular rate, and then that present value is deducted from outflow to ascertain the profit.

You might be interested in
A favorable direct materials price variance might lead to an unfavorable direct materials quantity variance because the company
Lemur [1.5K]
25 is ur answer good ser
3 0
3 years ago
A buyer purchased a new residence for $175,000. The buyer made a down payment of $15,000 and obtained a $160,000 mortgage loan.
Naily [24]

Answer:

Buydown, is the right answer.

Explanation:

This is a buydown mortgage arrangement because in the buydown financing technique the buyer tries to take lower interest rates in the initial year of the loan period. Moreover, some mortgage lenders provide buydown discounts or points as part of their promotion. Secondly, the builder pays the initial payment to the mortgage institution that results in the lower buyer’s payment.

3 0
3 years ago
Pacific Packaging's ROE last year was only 6%; but its management has developed a new operating plan that calls for a debt-to-ca
Flura [38]

Answer:

36%

Explanation:

For the computation of the company's return on equity first we need to follow some steps which is shown below:-

Step 1

Earnings before tax = EBIT - Interest

= $452,000 - $152,000

= $300,000

Step 2

Earnings after interest and taxes = Earnings before tax - Tax

= $300,000 - ($300,000 × 40%)

= $300,000 - $120,000

= $180,000

Step 3

Asset turnover ratio = Total revenue ÷ Total assets

3.6 = $4,000,000 ÷ Total assets

Total assets = $1,111,111.11

Step 4

Equity ratio = 1 - Debt ratio

= 1 - 0.55

= 0.45

Step 5

Total Equity = Equity ratio × Total assets

= 0.45 × $1,111,111.11

= $500,000

and finally

Return on Equity = Net income ÷ Equity

= $180,000 ÷ $500,000

= 0.36

or

= 36%

3 0
3 years ago
Most people are aware of someone at school or at work with whom they don’t really associate. Pick someone in your school that yo
stiks02 [169]

Answer:

how is your day going I am the cootie man how is your day going on in the Gucci mane how

Explanation:

dd

6 0
3 years ago
What amount must he invest today if his investment earns 8% compounded annually? What amount must he invest if his investment ea
VMariaS [17]

Answer:

Compounded annually:

24820 = x * (1.08^3) = 1.259712x

x = 24820/1.259712 = $19703

Compounded quarterly:

24820 = x*(1.02)^12 = 1.26824x

x = 24820/1.26824 = $19570

Explanation:

I hope you can understand better and no need for further explanation.

8 0
3 years ago
Other questions:
  • True or false a culinarian is who has studied and continues to study the art of cooking
    8·1 answer
  • Degelman Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January
    9·1 answer
  • What type of tax structure is the “fairest.” What, if any, alternative tax structure would you propose to replace the federal in
    10·1 answer
  • Reethika is in a meeting and has an important question. The only coworker who can answer the question is in a different meeting.
    6·1 answer
  • Mondo Snow Removal's cost formula for its vehicle operating cost is $1,300 per month plus $621 per snow-day. For the month of Ja
    14·1 answer
  • A travel company sells tours in Costa Rica on its website. Instead of designing the website themselves, the company hired an out
    5·1 answer
  • Which of the following activities will most likely help build a positive image for a business? O A. Issuing a product recall B.
    10·2 answers
  • Martha and Oleg are competitors in a local market and each is trying to decide if it is worthwhile to advertise. If both of them
    12·1 answer
  • A(n) ________ is a specific type of strategic alliance in which the partners form a separate, independent organization for some
    13·1 answer
  • Most new carmex products are priced between $0. 99 and $2. 99, well within reach of the price-sensitive mass consumer market. Ca
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!