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3 years ago

A negative net present value means that the___________

Business

1 answer:

Temka [501]3 years ago

6 0

Answer:

D : project's rate of return is less than the required rate of return.

Explanation:

Net present value (NPV) is a projects evaluation technique that analyzes the present values of predicted future revenues and expenses. In other words, NPV is the current value of future inflows minus costs. In calculating the NPV, future values are discounted with an appropriate discount rate to give the present value.

The NPV can be a positive, zero or negative. Projects with positive NPV are preferred because they are considered profitable. A negative NPV signals that the present value of the expected inflows is lower than the current value of the projected cost at the required discount rate. If the discount rate is maintained, the project is a loss-making venture.

The use of a very high discount rate may give any projects a negative NPV.

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_________ were set up because congress felt it was unable to handle the complexities and technicalities required to carry out sp

sdas [7]

<span>Regulatory agencies is the answer you need. Since the congress and its members can't know everything that there is to know about making sure that the laws are being obeyed, regulatory agencies were made to ensure that people obey the laws. Such agencies do different things, from making sure hygiene is up to making sure people pay their taxes.</span>

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4 years ago

O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their nominal annual, not semiannual yiel

kiruha [24]

Answer:

7.84%

Explanation:

Given:

Bond's par value (FV) = $1,000

Maturity (nper) = 25 × 2 = 50 periods (since it's semi-annual)

YTM (rate) = 0.0925÷2 = 0.04625 semi annually

Price of bond (PV) = $875

Calculate coupon payment (pmt) using spreadsheet function =pmt(rate,nper,-PV,FV)

PV is negative as it's a cash outflow.

So semi- annual coupon payment is $39.20

Annual coupon payment = 39.2×2 = $78.40

Nominal Coupon rate = Annual coupon payment ÷ Par value

= 78.4 ÷ 1000

= 0.0784 or 7.84%

4 0

3 years ago

Pre-determined overhead rates are calculated by dividing estimates of total factory overhead cost in the upcoming accounting per

Anna11 [10]

Answer:

The correct option is A, true

Explanation:

The predetermined overhead absorption rate is a forecast overhead rate usually computed by estimated total factory overhead by the planned usage or capacity of the unit of the activity.

This is more like planning ahead for the overhead to be incurred, hence the correct option is A , which truly supported that the statement made in the question

3 0

4 years ago

The inflation rate in Great Britain is expected to be 4% per year, and the inflation rate in Switzerland France is expected to b

VladimirAG [237]

Answer:

The spot rate in two years time = SF 12.99

Explanation:

The purchasing power parity states that the relationship between the current and future spot rate between two currencies can be linked to the differences in the expected inflation rate between the currency.

This relationship can be expressed as follows:

S1= So× (1 + hc)/(1 + hb)

So= Current spot rate, Hc- inflation rate in Switzerland, Inflation rate in Britain

Spot rate in a year's time

S1= 12.50, Hc=6%, Hc=4%

S1= 12.50× (1.06/1.04)

S1=12.74

Spot rate in two year's time

S1= 12.74× (1.06/1.04)

S1= 12.99

The spot rate in two years time = SF 12.99

5 0

3 years ago

A determination of whether consideration exists depends on a comparison of the values of the things exchanged.

Ann [662]

I think the answer would be true :)

4 0

4 years ago