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Scorpion4ik [409]
3 years ago
5

Capital expenditure decisions are useful for estimating inventory acquisition costs. always involve the acquisition of long-live

d assets. consist of a final list of approved projects. all of these answer choices are correct.
Business
1 answer:
liberstina [14]3 years ago
6 0

Answer:

always involve the acquisition of long-lived assets

Explanation:

Capital expenditures can be regarded as the investments that is made by

companies in order to grow or maintain their business operations.

It can as well be regarded as capital expense and it's explained as money that is been spent by an organization or corporate entity in buying, maintaining as well as improving its fixed assets, these asset could be buildings, equipment, vehicles or land.

It should be noted that Capital expenditure decisions always involve the acquisition of long-lived assets

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True/False
alexgriva [62]

Answer:

True

Explanation:

Revenue accounts are accounts were entries of the sales of products as well as the revenue generated by firm or company are properly recorded.

Expense accounts are accounts where that show us the expenses generated by a firm or company. Such expenses are the things the company spends money on which could be purchase of raw materials, payment of labour, repairs of machineries e.t.c.

An accounting period is a duration of time where accounts in a firm or company are balanced and closed for that period.

Revenue and expense accounts must be closed out because their balances apply to only one accounting

period.

3 0
4 years ago
Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management pl
LUCKY_DIMON [66]

Answer:

Icarus total value: 478,459,899

Explanation:

We will calcualte the WACC to know the cost of capital for the company:

WACC = K_e(\frac{E}{E+D}) + K_d(1-t)(\frac{D}{E+D})

Ke 0.14

Equity weight 0.79

Kd 0.07

Debt Weight 0.21

t 0.4

WACC = 0.14(0.79) + 0.07(1-0.4)(0.21)

WACC 11.94200%

Now we calcualte the value of the company:

\frac{FCF}{return-growth} = Intrinsic \: Value

59,000,000

<u> (21,000,000) </u>

38,000,000 Free Cash flow ofthe Firm

\frac{38,000,000}{0.11942-0.04} = Intrinsic \: Value

\frac{38,000,000}{0,07942} = Intrinsic \: Value

Value: 478.468.899

7 0
3 years ago
Purchasing power parity (PPP) is a conversion that determines the equivalent amount of goods and services different currencies c
andre [41]

Answer:

Yes this is True because this conversion is used to capture the differences in cost of living between countries.

3 0
3 years ago
The management of Osborn Corporation is investigating an investment in equipment that would have a useful life of 8 years. The c
motikmotik

Answer:

$80,800

Explanation:

Calculation to determine the annual cash inflow have to be to make the investment in the equipment financially attractive

Using this formula

Annual cash flows = Negative net present value to be offset ÷ Present value factor

Let plug in the formula

Annual cash flows = $401,414 ÷ 4.968

Annual cash flows = $80,800

Therefore the annual cash inflow have to be to make the investment in the equipment financially attractive is $80,800

4 0
3 years ago
Sandhill Company purchases an oil tanker depot on January 1, 2020, at a cost of $639,700. Sandhill expects to operate the depot
babymother [125]

Answer:

Dr Depot $639,700

Cr Cash $639,700

Dr Depot $40,070

Cr Asset retirement obligation $40,070

Explanation:

Sandhill Company Journal entries

Dr Depot $639,700

Cr Cash $639,700

Dr Depot $40,070

Cr Asset retirement obligation $40,070

8 0
4 years ago
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