All categories

3 years ago

Match the measures of worth in the first column with an appropriate definition from the list below.

Business

1 answer:

alexira [117]3 years ago

6 0

Answer:

1. Future worth.

2. Present worth.

3. Annual worth.

4. Internal rate of return.

5. Discounted payback period.

6. External rate of return.

7. Capitalized worth.

Explanation:

Rate of return can be defined as the percentage of interest or dividends earned on money that is invested.

In Financial accounting, a return refers to the amount of profit generated by an investor on an investment over a specific period of time.

Basically, the rate of return which is typically expressed as a percentage of the initial costs of an investment can either be a gain or a loss on an investment. Therefore, a positive rate of return on an investment over a specific period of time, simply means that an investor is making a profit (gains) while a negative rate of return on an investment over a specific period of time, indicates that the investor is running at a loss.

The measures of worth with an appropriate definition is listed below;

1. Future worth: converts all cash flows to a single sum equivalent at t-(planning horizon) using i = MARR.

2. Present worth: converts all cash flows to a single sum equivalent at t = 0 using i = MARR

3. Annual worth: converts all cash flows to an equivalent uniform series over the planning horizon

4. Internal rate of return: determines an interest rate that yields a PW (or FW or AW) of O

5. Discounted payback period: determines how long it takes for the cumulative present worth to be positive at i = MARR.

6. External rate of return: Determines the interest rate that equates the future worth of invested capital to the future worth of recovered capital invested at i = MARR

7. Capitalized worth: Determines the PW when the planning horizon is infinitely long

You might be interested in

The fed increases the quantity of money. in the short run, the quantity of money demanded ______ and the nominal interest rate _

Nimfa-mama [501]

The quantity of money demanded <u>increases</u> and the nominal interest rate <u>falls.</u>

In the short run, if the Fed(Federal Reserve) increases the quantity of money, the quantity of money demanded will increase and the nominal interest rate falls.

The quantity of the money supplied and the nominal interest rates has an inverse relation. That is, when there is a huge supply of money in a short-term, it will cause an increase in the nominal interest rate.

The nominal interest rate refers to the interest rate before adjusting to inflation or price-hike. It balances the supply and demand of money.

So when there is an increase in the supply of money ,there will be the resulting increase in the demand of money too. The total money that the population wants to hold is referred as the money demanded.

Learn more about Fed( US Federal Reserve) at brainly.com/question/25843620

#SPJ4

8 0

2 years ago

What does software alone enable a computer to do?

photoshop1234 [79]

Connect the internet

3 0

3 years ago

Read 2 more answers

Suppose that prices in the United States rise relative to prices in France. We expect that (on the foreign exchange market) the

mixer [17]

Answer:

Decrease , Increase

Explanation:

Rising prices of goods and commodities in the United States would absolutely lead to a decrease in demand of the US dollars. This is principally due to the fact that, elsewhere, there is an alternative that costs lesser and hence, there would be a shift in sourcing, making the US dollars weakens.

Now, it is established that demand and supply are an inverse relationship. Due to the fact that demand is low, there’ would be an increase in supply of the currency in the foreign exchange market died to tube fact that there has been an increase in supply for it

4 0

3 years ago

What changes over time depending on the rate of return?

valentina_108 [34]

It changes over time, depending on the expected rate of return on productive assets exchanged among market participants and people's time preferences for consumption.

4 0

4 years ago

Classify each of the following financial statement items based upon the major balance sheet classifications. select a major bala

seropon [69]

Answer:

Prepaid Advertising - Current Asset

Equipment - Property, Plant, and Equipment

Trademarks - Intangible Assets

Salaries and Wages payable - Current Liabilities

Income Tax payable - Current Liabilities

Retained Earnings - Stockholder's Equity

Account Receivable - Current Assets

Land (Held for future use) - Long term Investment

Patents - Intangible Asset

Bonds Payable - Long term Liability

Common Stock - Stockholder's Equity

Accumulated Depreciation - Property, Plant, and Equipment

Unearned sales revenue - Current Liability

Explanation:

Balance Sheet of a company has different heads under which items are classified according to their nature. The major account heads for classification are Assets, Liabilities and Equity.

Prepaid Advertising and Account receivable are classified as current asset because this is expected to be used within a year.

Equipment is classified as Long term asset under the head, Property, Plant and Equipment. The equipment has estimated useful life more than a year then it is classified as Long term asset.

Trademarks and patents are classified as intangible assets, because they are not physical in nature.

Salaries and Wages payable, Income Tax payable and Unearned sales revenue are classified as Current liabilities. These expenses are due to pay within a year.

Retained Earnings and Common Stock are classified as Stockholders equity. The amount after subtracting all liabilities from total assets is referred to as Stockholder equity.

Accumulated depreciation is deducted from Property, Plant and Assets. This has negative sign and is a contra asset account.

5 0

3 years ago