The answer is false. The investment is profitable if the total of all the adjusted cash inflows and the outflows is higher than zero. The Positive net cash inflow additionally indicates that the rate of return exceeds the 5% discount rate.
The required rate of return (RRR) for a stock with a high beta in relation to the market should be higher for investors utilizing the inflows CAPM calculation. The Investors must be compensated for the increased level of risk associated with investing in the higher beta stock by the greater RRR in comparison to other the investments with low betas.
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The complete information is that on January 1 2016 the Allegheny Corporation purchased machinery for $115,000. The estimated service life of the machinery is 10 years and the estimated residual value is $5,000. With that in mind, the machine is expected to produce 220,000 units during its life. In that case we can calculate a depreciation for 2016 and 2017 and doing it with one of the methods which is called Straight-Line Depreciation which states that:
<span>Choose Numerator: / Choose Denominator: = Annual Depreciation Expense </span>
<span>Cost minus Salvage / Estimated Useful Life (years) = Depreciation Expense </span>
The tendency of survey participants to agree that an innovation is a good idea is known as Acquiescence bias.
<h3>What is Survey?</h3>
Survey refers to the act of examining and asking the list of question to the different variety of people in order to extract the specific information.
In a survey, the likelihood for respondents to agree that a new product is a good idea is known as Acquiescence bias.
Therefore, it can be concluded that Acquiescence bias is the correct term for the given blank.
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Answer:
Latinmore made money on the exchange rate movement. It was an exchange rate gain of $369,566. The marginal tax impact was $147,826.
Explanation:
Since the standard practice in accounting is to reflect the current situation of the company, any change in the exchange rate that affects the assets of the company abroad must be recognized. The financial income of exchange gains are registered in the Income Statement and affects the base to pay income tax.
Answer:
The total cost is 3,360,000 and consiste of the proce of the new equipment plus the shipping and installtion cost. In contrast, Alexander's initial investment outlay are liabilities.
Explanation:
acquisition cost + shipping and installation cost = equipment value
3,200,000 + 160,000 = 3,360,000
The increase in liablities, will be that, liabilities, not cost, because is not associate with the equipment being ready to use. The equipment is ready to use, once is installed. so shipping and installment cost should be activated, not the accruals and account payable.
