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Orlov [11]
3 years ago
6

Because "present value" refers to the value of cash flows that occur at different points in time, a series of present values of

cash flows should not be summed to determine the value of a capital budgeting project.
a. True
b. False
Business
1 answer:
Alecsey [184]3 years ago
4 0

Answer: False

Explanation:

Present value is not the value of cash flows that occur at different points in time but rather the value of cash flows at the current point in time. The values can therefore be added up to determine the value of a capital budgeting project because they relate to the same time period.

This is the basic premise that the Net Present Value capital budgeting method works on. It discounts the various cash inflows to the present period, adds them up and then subtracts the cost of the project. If it is positive then the project is off good value.

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3 years ago
The leontief paradox describes evidence ________. in support of the predictions of the mercantilist theory that the assumptions
Bond [772]

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7 0
4 years ago
Which item will appear on the credit side of ledger account?
sashaice [31]

I just looked it up and I think that it is a

4 0
3 years ago
Swifty Company's accounting records show the following at the year ending on December 31, 2022: Purchase Discounts $ 11300 Freig
Juli2301 [7.4K]

Cost of goods sold (Periodic System) = Beginning inventory + (Purchases, net of returns and allowances, and purchase discounts) + freight in − Ending inventory .

COGS = Cost of goods sold

COGS = 46200+(401100-13500-11300)+16000-57900

COGS = 380600

The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.

First In First Out (FIFO), Last In First Out (LIFO), and the Average Cost Method are the three techniques that a business might employ when tracking the amount of inventory sold over a given time period.

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7 0
2 years ago
The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125.
Andreas93 [3]

As a seller we would receive $1,041.25

<u>Solution:</u>

You may receive the bid price of the dealer, 104.125\% of $1,000, or $1,041.25

Prices of treasury bonds are expressed as par value amounts.  

The quote price of 104:25 means that the bond is priced at (104 + \frac{25}{100})\%= 104.25\% of the par value.  

Therefore, if the debt is $1,000, the dollar values to be charged by the borrower should be 1,000\times104.25\% = \$1,041.25

5 0
3 years ago
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