Answer:
Planning
Explanation:
Planning of a project is needed to provide a guide to sponsors, stakeholders, the team, and the project manager on project phases and schedule.
When planning is done it avoids delays, identifies desired goals, reduces risk, and effectively delivers expected result.
Lack of planning causes waste of resources and missed deadlines on the project.
Steps in a project plan can include the following:
- Meeting with stakeholders
- Set goals
- Define deliverables
- Create a schedule
- Perform risk assessment and identify issues
- Present the plan to stakeholders
Answer:
C. A capital expenditure.
Explanation:
This is an example of a capital expenditure as it makes significant improvements to the machines and extends the life considerably.
These types of expenses are capitalized in the balance sheets under the original asset name and the asset is revalued by the improvement cost and stated at net book value + improvement.
Revised depreciation is then calculated on this new NBV as applicable with increased life of asset.
Hope that helps.
Answer:
d. $96,914
Explanation:
Parker Co. can execute money market hedge in following steps:
(1) Parker Co. pledges Receivable of SF200,000 to borrow SF190,476 with rate 5% in Switzerland; SF190,476 = SF200,000/ (1+5%)
so it has to pay interest expense of SF9,524 in 360 days. The receivable of SF200,000 is enough for both principal and interest in 360 days.
(2) Then it sells SF190,476 at spot rate $0.48 to get $91,428
(3) Then it deposits $91,428 in US with rate 6% to get back $96,914 in 360 days
; $96,914 = $91,428 * (1+6%)
<u>Answer:</u>
The correct answer for this is: Gross Rent Multiplier.
<u>Explanation:</u>
The type of a simplified alternative to capitalization of net income that does not take into account bad debts or expenses is called Gross Rent Multiplier (GMR).
Gross Rent Multiplier is used to find the approximate net incomes that does not include any bad debts or expenses.
Also, it is considered as the quickest tool to estimate the values, such as of a building.
Answer:
The answer is c. present value index
Explanation:
Present value index is the ratio decided by dividing net present value of the project by its require initial net cash outflows.
Once having constraint on selecting investment with positive NPV to be made due to lack of fund, a firm's usually use Present value index for further decision making.
The investment with higher present value index shows that it generates more net cash flow or in other words, more efficient and requires less initial cash outflow, and thus usually be chosen over the other ones with lower present value index.
