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
r-ruslan [8.4K]
3 years ago
6

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

Business
1 answer:
m_a_m_a [10]3 years ago
6 0

Question:

When performing capital budgeting, __________ incurred by a project are irrelevant to future investment decisions.

A) Opportunity costs

B) Depreciation

C) Sunk costs

D) Taxes

Answer:

The correct answer is C) Sunk Costs      

Explanation:

Capital Budgeting is the art (most applicable to corporate persons) of planning expenditure that will be incurred in the future, especially on long term assets.

The reason you cannot factor Sunk Cost into a Capital Budget is because of  its very nature.

Sunk Costs refer to monies for items that have already been expended and can never be recovered. If it can never be recovered and has <u>already</u>  been incurred, it has no role to play in future considerations especially when the purpose of Capital Budgetting is considered.

The primary purpose of a Capital Budget is that it helps to further evaluate the inflow against the outflow of an investment to check whether or not the return is acceptable.

Every other option given in the question above are items that have futuristic qualities.

Cheers

You might be interested in
This is due at 12. please help me
Over [174]
1. 110
2. 75
Won 110
Lost 35.
I tried my best sorry if it wrong.
5 0
3 years ago
An investment counselor calls with a hot stock tip. he believes that if the economy remains​ strong, the investment will result
vlabodo [156]

Expected profit is the probability of receiving a profit multiplied by the profit

So

Strong 50,000 * .30 = 15,000

Moderate = 10,000 * .60 = 6,000

Recession = -50,000 * .10= -5,000

Add those up, and you should expect a profit of around 16,000

6 0
3 years ago
Read 2 more answers
The supply of seats for a psychology class at 10 a.m. is the same as the supply of seats for the same class at 2pm LO5 MO1 There
alex41 [277]

Answer:

The demand for 10 a.m. class is higher than the demand for the 2 p.m. class.

Explanation:

The supply of seats for the psychology class at 10 a.m is the same as the class at 2 a.m. But there is a surplus of seats at 2 a.m class and shortage of seats at 2 p.m class.  

Other things being constant this implies that more students are attending the 10 a.m class than the 2 p.m. class. This shows that the demand for the 10 a.m class is comparatively higher than the demand for the 2 p.m. class.  

This causes a surplus of seats at 2 p.m and shortage of seats at 10 a.m.

7 0
3 years ago
You have $130,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expect
Finger [1]

Answer:

Let X be the amount invested in stock A

Let 1-X be the amount invested in stock B

Expected rate = (Required rate of X* X) + (Required ratebof Y * (1-X))

0.146 = (0.128 * X) + (0.078 * (1-X))

0.146 = 0.128X + 0.078 -  0.078X

0.146 - 0.078 = 0.128X - 0.078X

X = 0.068/0.05

X = 1.36

Amount to be invested in Stick X = $130,000 * 1.36

= $176,000

Amount to be invested in Stock Y = (1-X) * Available amount

= (1-1.36) * $130,000

= $46,800

Therefore, the amount to be invested in Stick Y = -$46,800

Calculation of the portfolio beta

bp = w1b1 + w2b2 + ........ + wnbn

bp = (1.36*1.3) + ((-0.36) * 1.05)

bp = 1.768 - 0.378

bp = 1.29

Therefore, the portfolio beta is 1.39

7 0
3 years ago
What are Mormons?<br> (I just want to know what people think)
Sliva [168]
Mormons are a member of the Church of Jesus Christ of Latter-day Saints, a religion founded in the US in 1830 by Joseph Smith, Jr.<span>
</span>
7 0
3 years ago
Read 2 more answers
Other questions:
  • Kevin and Maria are building their portfolios. Kevin purchases shares in a mutual fund and pays fees to a manager who actively m
    6·1 answer
  • _____ integrates advertising of branded products into interactive games.
    5·1 answer
  • A major accounting contribution to the managerial decision-making process in evaluating possible courses of action is to a. assi
    10·1 answer
  • What condition is being met when goods are being produced and sold at the lowest possible average cost​?
    13·1 answer
  • A 60-day, 9% note for $10,000, dated May 1, is received from a customer on account. The maturity value of the note is Select one
    12·1 answer
  • A deadweight loss is a consequence of a tax on a good because the tax
    12·1 answer
  • Independent contractors should purchase __________ liability insurance, which provides protection from liability as a result of
    14·1 answer
  • If the federal reserve lowers the federal funds rate, what will happen to bank savings account?
    10·1 answer
  • Which one of the following statements concerning venture capital financing is incorrect? Multiple Choice Venture capitalists des
    7·1 answer
  • A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transact
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!