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
Answer:
The period of payback of the project is 2.30 years. Therefore, the correct answer is C
Explanation:
We will computing the Cumulative Cash Flow from Year 0 to Year 3
Cumulative Cash Flow Year 0 = Cash Flow of Year 0
= -$1,150
Cumulative Cash Flow of Year 1 = Cash Flow of Year 1 + Cash Flow of Year 0
= $500 + (-$1,150)
= -$650
Cumulative Cash Flow of Year 2 = Cash Flow of Year 2 + Cumulative Cash Flow Cash Flow of Year 1
= $500 + (-$650)
= -$150
Cumulative Cash Flow of Year 3 = Cash Flow of Year 3 + Cumulative Cash Flow Cash Flow of Year 2
= $500 + (-$150)
= $350
Now, Computing the Pay back period with the formula:
Pay back period = 2 + (Cumulative Cash Flow of year 2 / Cash flow of year 3)
= 2 + (-$150/ $500)
= 2 + 0.3
= 2.3 years
Intergroup conflict always results in positive benefits to individuals the group or the organization.
Explanation:
The social change, decision making, reconciliation, group unity and co operation are some of the positive effects of conflicts in an organization.
The advantages of conflicts are they create awareness for the existing problems. Then by discussing the conflicting views can provide better solutions and managing conflict is quicker and more efficient.
Intergroup conflict in an organization helps the people to come out with their own ideas with creative thinking.
An example for this conflicts are the problems between management and employee and between accounting and operations team, and between UI developers and backend team.
To resolve the problems in intergroup conflict people should openly discuss about the impact that the conflict has on productivity.
Answer:
The earnings per share for Bramble in 2020 is $2.99
Explanation:
This was arrived at by preparing income statement for 2020,where in the results from continued operations and discontinued were shown.
The income from continued operations attracted tax at 35% while the losses from the discontinued operations got a tax benefit at the same 35% tax rate.
Note that the earnings used in calculating earnings per share is net of preferred dividends as only earnings attributable to ordinary shareholders are considered.
Find attached spreadsheet for the full blown income statement and the calculation of earnings per share.
Frank cannot claim Anna or Marvin as a dependent.
Explanation:
Because Frank gives Anna and Marvin every support, support tests are straightforward.
Anna earns revenue in excess of $4200 and can not therefore be requested as dependent. In fact, Marvin does not stay with Frank and can not therefore be stated as dependent.
The income tax credit, EITC or EIC is a bonus to low- and moderate-income employers. To apply, you must fulfill certain criteria and file a tax report, even if you are not obliged to pay a bill. The level of tax you pay is lowered by the EITC and a refund is probable.
