a basic rule in capital budgeting is that if a project's npv exceeds its irr, then the project should be accepted. group of answer choices true false

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Answer 1

False. A basic rule in capital budgeting is that if a project's NPV exceeds/crosses its IRR, then the project should be accepted is incorrect.

A capital budget is how a trading company evaluates the performance of a critical task or investment. Construction of a new facility or large funding for an outdoor business are examples of initiatives that should be capital budgeted before being approved or rejected.

Capital budgeting mainly refers to the decision-making method related to funding long-term initiatives. An example of this is a capital budget system run by an employer to decide whether to keep existing equipment or buy new equipment in place of old equipment.

The technique of capital budgeting is also known as funding estimation.

The most important thing in capital budgeting is the accuracy of the forecasted coin flow. The whole investment is regular and easy. However, considering all cash flow resources would be exhaustive.

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Complete question:

A basic rule in capital budgeting is that if a project's NPV exceeds its IRR, then the project should be accepted. True/ False.


Related Questions

banks and insurance companies are examples ofmultiple choicecentral banks.regulatory agencies.financial institutions.financial instruments.

Answers

Banks and insurance companies are examples of financial institutions, which are organizations that provide financial services to customers.

These services may include accepting deposits, making loans, providing insurance products, and offering other financial services such as investment advice and wealth management. Banks are financial institutions that accept deposits from customers and use those deposits to make loans to other customers. They also offer a range of other services such as credit cards, online banking, and wealth management products. Banks are an essential component of the financial system as they provide credit to individuals and businesses, which fuels economic growth. Insurance companies, on the other hand, provide protection against financial losses that may arise from unexpected events such as accidents, illness, or death. They collect premiums from customers and use those premiums to pay out claims when necessary. Insurance companies offer a variety of products, including life insurance, health insurance, car insurance, and home insurance. In summary, banks and insurance companies are examples of financial institutions, which are critical to the functioning of the financial system. Banks provide credit to individuals and businesses, while insurance companies offer protection against financial losses. Both types of financial institutions play a vital role in the economy and are subject to regulation by various government agencies to ensure their stability and integrity.

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to create the most ________ for someone like gabby’s dad, coffee houses need to minimize their expenses and keep their prices down. fancy furniture and free wifi are simply not of interest to consumers who want a quick, inexpensive cup of coffee.

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To create the most customer value for someone like gabby’s dad, coffee houses need to minimize their expenses and keep their prices down. fancy furniture and free wifi are simply not of interest to consumers who want a quick, inexpensive cup of coffee.

Which kind of market segmentation do most luxury product marketers who sell to the wealthy use?

Luxury brands concentrate on psychographic segmentation by looking at the lives of their customers. Since their purchasing decisions are mostly affected by these categories, the majority of luxury businesses have over the years targeted consumers whose lifestyles are primarily models, singers, film stars, etc.

Which sort of market segmentation takes into account consumers' spending and buying patterns and interactions with brands?

The technique of categorizing clients based on typical behaviors they display when interacting with your business is known as behavioral segmentation. You can divide your audience into groups for this form of segmentation based on: finance practices. Purchase practices.

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barbara is a 40% shareholder of abc corporation. she sells 50 shares of his stock to abc for $100,000. her basis in the shares sold was $65,000. after the sale she owns 30% of abc. how much income does barbara recognize?

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When a shareholder sells their shares to the corporation, the transaction is treated as a sale of property.

The gain or loss on the sale is calculated as the difference between the amount realized (the amount received) and the adjusted basis of the shares sold. In this case, Barbara sold 50 shares of her 40% ownership in ABC Corporation for $100,000, which gives a per-share price of $2,000.

The amount realized from the sale is $100,000, and Barbara's adjusted basis in the shares sold is $65,000. Therefore, her gain on the sale is $35,000 ($100,000 - $65,000).

Since Barbara is a shareholder of ABC Corporation, her sale of shares to the corporation may result in a change in ownership percentage. After the sale, Barbara owns 30% of ABC Corporation. This change in ownership percentage may trigger additional tax consequences. However, the question does not provide enough information to determine whether any additional tax consequences apply.

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the fixed costs per unit are $10 when a company produces 20,000 units of product. what are the fixed costs per unit when 16,000 units are produced?

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The fixed cost per unit when the company produces 16,000 units is $12.5

If fixed costs per unit are $20 when a company produces 20,000; then the total fixed costs would be $10 X 20,000 = $200,000.

If 16,000 units are produced then the fixed costs per unit would be $12.5; $200,000 / 16,000

Fixed costs, also known as indirect costs or overhead costs, are costs incurred by a company that are independent of the volume of goods or services the company produces. Like interest payments or monthly rent, they frequently occur again.

These expenses are often capital expenses as well. Variable costs, on the other hand, are volume-related (and paid based on the quantity produced) and unknowable at the start of the accounting year.

Certain variable costs' characteristics are impacted by fixed costs. For beginning business owners, fixed costs are seen as a barrier to entry. Understanding the difference between variable and fixed costs is crucial.

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sonia manages a tasty pastry store for united food company. to manage the business, sonia's authority can be implied by an inference from the position sonia occupies. any inference a reasonable customer or supplier would make. any inference sonia chooses to make. no inference.

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Sonia manages a tasty pastry store for united food company. to manage the business, sonia's authority can be implied by A. an inference from the position sonia occupies.

Who is manager ?

According to the conventional definition, a manager is only someone who coordinates the efforts of others. Simply simply, managers coordinate the efforts of others to accomplish goals. Managers in the modern workforce could be in charge of particular systems or tasks that don't involve people.

Planning, organising, staffing, leading, and managing are the five general responsibilities that make up management at its most basic level.

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what would happen to optimum population size from the point of view of sauvy's economic optimum if overhead (e.g., tribute paid to outsiders) were increased?

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If the overhead were to increase, the optimal population size would decrease from the point of view of Sauva's economic optimum. Additionally, overhead costs can be considered a kind of tax that would further reduce the amount of resources available to the population.

An increase in overhead would lead to a reduction in the amount of resources available to the population, which would make it more difficult for the population to maintain a sustainable level of economic growth. With fewer resources available, the population would have to decrease to maintain the same level of economic growth. Consequently, the optimal population size would decrease in response to an increase in overhead.

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'import tariffs are put in place to increase foreign competition.'' true or false?

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Import tariffs are put in place to increase foreign competition. - False

Import tariffs are levied on imported goods by a government as taxes, raising the cost of the items for both the importer and the final consumer. Import tariffs are put in place to safeguard domestic industries by raising the cost of imported goods and decreasing their ability to compete with items made in the country. These are placed in place to lessen, not boost, international competition.

Import tariffs can assist shield home sectors from international competition and level the playing field for domestic manufacturers by raising the cost of imported goods. This can be crucial for sectors that are struggling to compete with imports from other nations that are more affordable. Import taxes, however, can also result in higher consumer costs and trade disputes with neighboring nations.

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PLS HELP BIG TEST

Factors affecting exchange rates include ______. Choose ALL answers that are correct.

season

language

inflation

debt

Answers

Answer:

government policies

trade balance

interest rates

currency supply and demand

Explanation:

You produce a car that costs $20,000 to make. The market price for the car is $15,000. At this price, you would supply _____ cars.

one
zero
many

Answers

Zero cars supply at the price of $15,000 if the production cost is $20,000.

Because If a business's price is greater than its average cost of production for the quantity produced, the firm will profit. In contrast, if a corporation's pricing is lower than its average cost of production, the firm will lose money.

What is the distinction between market value and manufacturing cost?

You must also realize that the cost of your product or service is the amount you spend to manufacture it. The price is your monetary compensation for supplying the goods or service. The value of a product or service is what the client feels it is worth to them. Cost is often the expenditure incurred for producing a product or service that a firm sells. The amount a consumer is willing to pay for a product or service is referred to as the price. The cost of manufacturing a product has a direct influence on both its price and the profit derived from its sale. The production function is responsible for developing new items, regulating product quality and quantity, and scheduling delivery. However, the marketing function focuses on delighting clients and providing their wants.

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suppose that the cpi in 2013 was 250 and the cpi in 2014 was 260. what is the rate of inflation in this economy? b) 4.0% d) 96.2% a) 3.8% c) 10.0%

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In 2013, the cpi was 250, while in 2014, it was 260. The inflation rate in this economy is 4.0 percent.

What is inflation?

The rate of price appreciation over a set time period is known as inflation. Sometimes the amount of inflation is expressed in general terms, such as the overall rise in prices or the rise in the cost of living nationwide. Demand-pull inflation is the term used to describe situations where there is not enough supply of products or services to satisfy demand, which results in an increase in their prices.

Inflation is the widespread rise in the cost of goods and services throughout an economy. As the overall price level rises, each unit of currency may buy fewer goods and services, hence inflation is related to a reduction in the money's purchasing power.

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if the government of a country subsidizes the production of a good, it: multiple select question. reduces supply. lowers the cost of production. increases the cost of production. increases supply.

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When the government of a country provides subsidies for the production of a good, it can have various effects on the market for that good.

One of the most direct effects is a reduction in the cost of production for the producers. This is because the subsidies essentially act as payments from the government to the producers to help them offset some of the costs of production. The subsidies can be in the form of direct cash payments, tax credits, or other forms of financial assistance. The reduction in the cost of production can incentivize producers to increase their production of the subsidized good. This is because the subsidies make it more profitable for the producers to produce the good, even if the market price is low. As a result, the increase in production can lead to an increase in the supply of the good in the market. However, the effect of subsidies on the supply of the good is not always straightforward. If the market for the good is highly competitive, the increase in supply resulting from the subsidies can lead to a decrease in the market price for the good. In this case, the lower market price can offset some of the benefits of the subsidies for the producers. On the other hand, if the market for the good is not highly competitive, the subsidies can lead to an increase in the market price for the good. This is because the producers may be able to increase the price of the good due to the reduction in their production costs resulting from the subsidies. In this case, the subsidies can result in a benefit for the producers in the form of higher profits. In summary, when the government of a country provides subsidies for the production of a good, it can lower the cost of production for the producers and increase the supply of the good in the market.

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a chinese restaurant buys 1 pound of rice for $1; soy, fish and oyster sauces for $1 each; and assorted vegetables for $20. they create 10 meals with these ingredients and sell each meal for $5. how much does this process contribute to gdp?

Answers

The process contribute to gdp is $50. ( $10*5= $50).

What distinguishes real GDP from nominal GDP?

The Gross Domestic Product (GDP) without regard to inflation is known as nominal GDP. Real GDP is a nation's GDP that has been corrected for inflation. A nation's nominal GDP is calculated using current-year pricing for goods and services. Real GDP can be compared to GDP from the base year, making it a more accurate measure of economic growth. However, gdp cannot be linked to any GDP from a prior year. Nominal GDP can be defined as the worth of goods and services produced in the nation during the previous year at the present price. The value of the products and services generated in the nation over the previous year, assessed at base-year prices, is known as Real GDP.

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you buy a car for $39,500. you agree to a 60-month loan with a monthly interest rate of 0.80 percent. what is your required monthly payment?

Answers

671.81 is the required monthly payment for the car which was for $39,500 and a 60-month loan with a monthly interest rate of 0.80 percent.

M is defined as P [i(1 + i)n] / [(1 + i)n - 1].
So,  
60[0.80(1+0.80)n/[(1+0.80)n-1 with $39,500 = 671.81 monthly payment.


Total monthly payment equals M. P is equal to the sum of your debt. The term "Required Monthly Payment" refers to the sum needed to amortise the outstanding principal balance of this Note over a twenty-five (25) year period in equal monthly payments. This principal balance includes accrued interest. In order to maintain good standing with the credit card business, a customer must make at least the minimum monthly payment on their revolving credit account each month. The least a customer ccan do to avoid late penalties and to have a positive payback history on their credit report is to make the minimum payment on time each month.

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If Julia releases a formal statement, which level of organizational culture is she affecting?

Answers

If Julia releases formal statement, enspoused values level of the organizational culture she is affecting.

What is organizational culture?

Organizational culture is the shared values, beliefs, assumptions, behaviors, and practices that define an organization and its employees. It shapes the way people interact and work together, and influences decision-making, communication, and overall performance. Culture can be reflected in the organization's mission statement, policies, traditions, and symbols, as well as in the way employees dress, talk, and behave. A strong organizational culture can promote employee engagement, motivation, and retention, as well as improve productivity and customer satisfaction. Conversely, a negative or toxic culture can lead to low morale, high turnover, and poor performance. Therefore, it is crucial for organizations to create and maintain a positive and healthy culture that aligns with their goals and values.

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you will be receiving cash flows of: $1,000 today, $2,000 at end of year 1, $4,000 at end of year 3, and $6,000 at end of year 5. what is the present value of these cash flows at an interest rate of 7%?

Answers

As a result, $10,499.41 is the value of such cash flows at a 7% interest rate.

How Does Cash Flow Work?

The total sum of liquid assets coming into and going out of a business is referred to as cash flow. Both inflows and outflows are represented by funds earned and spent, including both.

What does cash flow mean for beginners?

The movement of money into or out of a project, business, or financial product is known as cash flow. It is typically measured over a predetermined, limited time period and can be utilized to gauge the rate of return, actual cashflow, real profits, and investment quality. Cash flow and profit differ primarily in that profit denotes the amount of money left over.

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what explicit tax rate would keep orlando indifferent between purchasing a municipal bond with a 4.0 percent return and a taxable bond with a 5.5 percent before-tax return?

Answers

Explicit tax rate of 27.3 % would keep Orlando indifferent between purchasing a municipal bond with a 4.0 percent return and a taxable bond with a 5.5 percent before-tax return.

Requirement 1-

0.055 * (1 - Tax Rate%) = 0.04

1 - Tax % = 0.04 / 0.055

1 - Tax % = 0.727

Let Tax % is X

1 - 0.727 = Tax %

0.273 = Tax %

Tax = 27.3 %

Tax compliance refers to individual policies and behavioral measures to ensure that taxpayers pay the right amount of tax at the right time and benefit from appropriate preferential and reimbursement policies. A tax is a compulsory fiscal levy or other tax imposed on taxpayers by government agencies to fund government and other government spending. Late payments, tax evasion, and other forms of tax resistance are prohibited and subject to legal penalties.

Hence the correct option is B

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The above question is incomplete, the complete question is-

What explicit tax rate would keep Orlando indifferent between purchasing a municipal bond with a 4.0 percent return and a taxable bond with a 5.5 percent before-tax return? Multiple Choice

A. 25.0%

B. 27.3%

C. 31.2%

D. 33.5%

gary and dane live in moorefield, west virginia. after graduating from college they return to moorefield but find that the opportunities for jobs and careers in their town are very limited. they decide to start a business. gary and dane have

Answers

Gary and Dane must first decide on a community need that their firm can fill if they are to launch a venture in Moorefield, West Virginia. They could wish to carry out market research to find out what products or services are needed but aren't already offered in the region.

How can it be explained in detail?

After they have found a promising company concept, they must create a business plan that includes information on the target market, the marketing approach, the price, and the financial predictions. The business plan will act as a road map for the starting phase and assist the entrepreneurs in obtaining capital, if necessary.

Gary and Dane would want to think about their financing possibilities for the company if they assume they require money. Instead, they may look for outside funding from friends, family, or venture capitalists. They could self-fund by utilizing their own resources or borrowing money. They will have to decide how much money they will need to start out with and how they would utilize it.

In addition, they must set up operating policies and processes and, if necessary, hire staff.

Although starting a business might be difficult, Gary and Dane may be able to do it while also generating new employment opportunities in their neighborhood with careful planning and diligent labor.

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The world flow of foreign direct investment between 1990 and 2017 increased 600 percent. If a company decides to establish a new operation in a foreign country, that company has engaged in Multiple Choice - greenfield investment - an acquisition - a franchise artangement
- a licencing arrangement

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The world flow of foreign direct investment between 1990 and 2017 increased 600 percent. If a company decides to establish a new operation in a foreign country, that company has engaged in "greenfield investment". The correct option is A.

The greenfield investment is the type of investment in which the foreign direct investment that parent company makes the subsidiary in the different company building its operations from the ground rise.

The benefits of Foreign Direct Investment (FDI) is  Capital inflows create higher output and jobs,  Capital inflows which can help the  finance of  a current account deficit and Long-term capital inflows are more sustainable than short-term portfolio inflows.

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true or false: to date, all major trading nations have accepted the united nations convention on contracts for the international sale of goods.

Answers

False, While the United Nations Convention on Contracts for the International Sale of Goods (CISG) has been widely adopted by many countries, not all major trading nations have accepted it.

What is the UN Convention on the Sale of Goods Internationally?

A multilateral agreement that creates a common framework for global trade is the United Nations Convention on Contracts for the International Sale of Goods (CISG), sometimes known as the Vienna Convention. It has been ratified by 95 nations as of 2022, accounting for two thirds of global commerce.

What is the International Trade Law Convention of the United Nations?

With a mandate to advance the gradual harmonisation and unification of the law of international commerce, the United Nations Commission on International Trade Law (UNCITRAL) is the central legal authority of the United Nations system in this area.

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doretha wants to buy a car that is available at two dealerships. the price of the car is the same at both dealerships. smith motors would let her make quarterly payments of $6,800.00 for 5 years at a quarterly interest rate of 3.54 percent. her first payment to smith motors would be due immediately. if ramos cars would let her make equal monthly payments of $4,400.00 at a monthly interest rate of 2.22 percent and if her first payment to ramos cars would be in 1 month, then how many monthly payments would doretha need to make to ramos cars? 17.46 (plus or minus 0.3 payments) 17.93 (plus or minus 0.3 payments) 30.86 (plus or minus 0.3 payments) 31.85 (plus or minus 0.3 payments) 16.19 (plus or minus 0.3 payments)

Answers

Doretha would have to pay Ramos Cars 30.86 (plus or minus 0.3 payments) per month. This is 30.86 (plus or minus 0.3 payments), which is closest to 31.85 when rounded to two decimal places (plus or minus 0.3 payments). Thus, "31.85 (plus or minus 0.3 payments)" is the correct response.

PV is the present value of the loan (the cost of the car), PMT is the quarterly payment, r is the quarterly interest rate, and n is the number of quarterly payments. In this instance, PMT = $6,800.00, r = 0.0354/4, and n = 5 x 4 = 20. By entering these values into the formula, we obtain:PV = $6,800.00 x (1 - (1 + 0.0354/4)^-20) / (0.0354/4) ,PV ≈ $90,357.48 Hence, the total amount of payments for Smith Motors is roughly $6,800.00 multiplied by 20 to equal $136,000.00. To determine the amount of monthly payments for Ramos Vehicles, we may once more use the present value formula for an annuity: In this instance, PMT = $4,400.00, r = 0.0222, and we're trying to find n. After entering these values into the formula,The total amount of payments for Ramos Vehicles therefore equals to $4,400.00 x n. By equating the two total payments, we obtain: $136,000.00 = $4,400.00 x n,n ≈ 30.86.

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making decisions and taking actions to achieve a superior fit between the organization and its environment is

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Strategic management is the practise of making choices and taking action to better match an organization's needs with its environment.

To establish plans and take actions that support the organization's goals and objectives, strategic management include studying and comprehending the organization's internal strengths and weaknesses as well as external opportunities and dangers. Strategic management enables an organisation to adapt to changes in the outside environment, preserve a competitive edge, and accomplish its long-term goals by bringing the business and its environment into harmony. The business is able to adapt proactively to environmental changes and retain its competitiveness through the use of a variety of procedures that are included in strategic management, such as environmental scanning, strategy formulation, implementation, and evaluation.

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during which step of the stp process should tek tennis racquets ask whether the segment is identifiable, substantial, reachable, responsive, and profitable?

Answers

Marketers ask whether the segment is substantial, identifiable, reachable, responsive, and profitable during the first step of the STP (Segmentation, Targeting, and Positioning) process, which is to evaluate segment attractiveness.

During the first step of the STP process, marketers evaluate the potential of each segment based on five criteria, which are whether the segment is identifiable, substantial, reachable, responsive, and profitable. Identifiability refers to whether the segment can be measured and identified, while substantiality refers to whether the segment is large and profitable enough to be worth targeting.

Reachability refers to whether the segment can be effectively reached and served, while responsiveness refers to whether the segment is likely to respond to marketing efforts. Finally, profitability refers to whether the segment is likely to generate sufficient profit for the company. By evaluating segment attractiveness based on these criteria, marketers can determine which segments to target and how to position their products or services to appeal to those segments.

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The sales clerks of Teresa’s Treasures are paid a salary of $225 per week plus a commission rate of 8% on all sales they make. Calculate the gross earnings for the employees---Remember to add their commission! Tina Valendez-Sales for the week: $2,392.50

Answers

The gross earnings for the employees, if the sale for a week will be $446.4.

What is the percentage?

The amount of any product is given as though it was a proportion of a hundred. The ratio can be expressed as a quarter of 100. The phrase % translates to one hundred percent. It is symbolized by the character '%'.

The percentage is given as,

Percentage (P) = [Final value - Initial value] / Initial value x 100

Teresa's Treasures pays its sales representatives a salary of $225 per week in addition to an 8% commission on all sales they make.

Then the gross earnings for the employees, if the sale for a week is $2,392.50, will be given as,

⇒ $255 + 0.08 x $2,392.50

⇒ $255 + $191.4

⇒ $446.4

The gross earnings for the employees, if the sale for a week will be $446.4.

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what can managers do to promote effective group decision making and avoid groupthink insist that a group evaluate all alternatives

Answers

It encourages the group to consider a range of options, rather than just the most obvious or popular ones. By evaluating all alternatives, the group can make a more informed decision and avoid the pitfalls of groupthink.

Managers should create a culture of open communication where every member of the group feels comfortable sharing their ideas, concerns, and feedback without fear of criticism or rejection. They should also ensure that everyone has an equal opportunity to speak and be heard.

Managers should encourage group members to think critically and challenge assumptions. This will help the group evaluate all alternatives and avoid groupthink.

Managers can assign a devil's advocate whose role is to question assumptions, challenge the prevailing opinions, and offer alternative perspectives. This will help the group consider all angles and avoid the pitfalls of groupthink.

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which stage of the marketing research process should walmart marketers complete next? reporting research findings collecting data locating and defining issues or problems interpreting research findings

Answers

Therefore, analysing and summarising the data, which includes interpreting research findings, should be the next task for Walmart marketers. Typically, the process of gathering data begins with a survey of any recent studies and information that provide data or expertise about the problem.

Which stage of conducting marketing research uses data analysis?

Analysis and Findings Reporting. The process of turning primary and/or secondary data into knowledge and insights that address the research questions is known as analysis of the market survey data.

Identifying the issue or the topic your study is attempting to address comes first in the marketing research process. Next comes creating a research plan to address that issue, gathering and evaluating the data, and finally delivering a report.

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Which business custom do the MINT countries of Mexico, Indonesia, Nigeria, and Turkey all have in common? a) following stict agendas for business meetings b) being punctual for business meetings c) avolding alcohol while dining d) discussing politics e) shaking hands

Answers

The correct option is e i.e., shaking hands is the business custom do the MINT countries of Mexico, Indonesia, Nigeria, and Turkey all have in common.

What are the conventions in global business?

International business customs are actions, conduct, or standards of communication that people in different nations observe. For instance, while people in other nations may greet each other with air kisses during business meetings, Americans often shake hands.

What three types of business customs are there?

You should be aware of three categories of corporate customs: cultural imperatives, cultural choices, and cultural exclusives. Cultural imperatives are norms that, in order to succeed, you must follow. Relationship building is an illustration of a cultural necessity.

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Mustafa is interested in a senior level position but he hasn’t updated his resume since landing his entry level job. What should he remove from his resume to make it appropriate for a senior level position

Answers

You might choose to pursue a different professional path at any point in your career if it better fits your interests and talents over time.

What updates should be made in resume ?

Better advantages, such as increased chances for growth or a better work-life balance, can be available in a different area. Once you've made this choice, you'll probably need to update your resume in order to apply for employment with confidence.

When changing careers, you must make sure that your resume emphasises the abilities that will help you succeed in your new field or profession.

Here are six stages to writing a resume that will land you a job, even if you have no prior experience in your new subject of interest.

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which business custom do the mint countries of mexico, indonesia, nigeria, and turkey all have in common?
A. Following strict agendas for business meetings
B. Bring punctual for business meetings
C. Avolding alcohol while dining
D. Discussing politics
E. Shaking hands

Answers

The correct option is E. Shaking hands business custom do the mint countries of Mexico, Indonesia, Nigeria, and turkey all have in common.

Business corporation economics is a place in carried out economics that makes use of monetary concepts and quantitative techniques to investigate commercial enterprise agencies and the factors contributing to the range of organizational structures and the relationships of organizations with labor, capital, and product markets.

Company economics is an area of done economics that studies the monetary, organizational, market-associated, and environmental issues confronted by agencies. industrial organization economics encompasses topics inclusive of the concept of shortage, product elements, distribution, and intake. company is also the efforts and activities of someone who's generating items or presenting offerings with the reason to promote them for profits. commercial agency Definition. industrial corporation refers to an enterprising entity or company that contains professional sports. They may be commercial enterprises, industrial, or others.

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beaufort, inc. is planning to purchase new machinery for its plant. the machine costs $5 million to purchase and install. the machine is expected to generate $800,000 of cash inflows at the end of each year for the next ten years. the machine will be sold at an estimated $500,000 at the end of the tenth year. at a discount rate of 10 percent per annum, the net present value of this project is closest to:

Answers

The accounting rate of return for this machine is 18.78%.

Net income = P 30000

n = 6 years

Initial cost (I) = P 240000

Let r = Rate of return

Annual cash flow (A) = Net income + Depreciation

= P 30000 + P 40000 = P 70000

I = A[1 - (1+r)^-n]/r

240000 = 70000[1 - (1+r)^-6]/r

r = 18.78%

An account is a particular report inside an employer's financial ledger or balance sheet. Accountants, finance experts, and bookkeepers can use debts to report important financial records, like reporting day-by-day transactions to confirm the exact amount of money an organization has at any moment.

In accounting, an account is a document within the famous ledger this is used to kind and maintain transactions. as an example, groups may additionally have an account of a coin wherein to file every transaction so one can increase or decreases the business enterprise's cash. fundamental accounting ideas used in commercial organizations globally cover income, charges, belongings, and liabilities. the one's elements are tracked and recorded in documents which encompass stability sheets, income statements, and cash glide statements.

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Complete Question:

A company is planning to purchase a machine that will cost P240,000, have a six-year life, and be depreciated over a six-year period with no salvage value. The company expects to sell the machine's output of 30,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the accounting rate of return for this machine?

Sales Costs:      P 900,000

Manufacturing      P 520,000                          

Depreciation on machine  40,000                              

Selling and administrative expenses300,000     (860,000 )

Income before taxes P 40,000

Income tax (25%)    (10,000 )

Net income    P 30,000

you are offered an investment that will pay you $200 in one year, $400 the next year, $600 in the third year, and $800 in the fourth year. you can earn 12% per year on similar investments. what is the most you would pay for this opportunity?

Answers

The most that you will be paid is $1432.93 with the following investment.

What is a capital investment?

A business's investment is basically the sum of money used to buy assets like real estate, equipment, or structures. The funds could be provided as loans, cash, or other assets. Without capital investment, firms might struggle to get started. Find out more about investment, including its principles and connections to the economy. In business, there are two ways to use the phrase capital investment. First of all, capital investment is cash utilized by a company to buy fixed assets like real estate, equipment, or buildings. Businesses might invest in capital to get the money they have to succeed.

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