need all answersHomework Answers
Ans: 1. The correct option for the answer is option C i.e. Carrying value
Ans: 2. The correct option for the answer is option C i.e. depreciation because it doesn't involve any cash; depreciation is related to fixed assets decreasing value not part of cash expense and rest all three involves cash therefore they are cash expense
Ans 3: the correct option for the answer is option D i.e. assigning greater value to more immediate cash flow because if an individual invest for long term investment range an individual must wants that he .she will get more cash flow very fast like immediate one
Ans 4: the correct option for the answer is option D i.e. present value ; it is the future cash flows discounted to the present at appropriate discount.
Add Answer to:
need all answers
need all 1-4
Which of the following is irrelevant to capital investment analysis?...
Which of the following methods will provide a correct analysis for capital budgeting purposes? discounting real...
Which of the following methods will provide a correct analysis for capital budgeting purposes? discounting real cash flows with real rates. discounting real cash flows with nominal rates. Odiscounting nominal cash flows with real rates. all of the above methods will provide similar results A project's Profitability Index is.85 and its net present value of $250,000. Given this information, determine the cost of the project. $135,135 $212,500 $250,000 $294,118
1. Which of the following capital investment evaluation methods use present values? A. Net present value...
1. Which of the following capital investment evaluation methods use present values? A. Net present value method B.Average rate of return method C. Both "Net present value method" and "Average rate of return method" D. Neither "Net present value method" nor "Average rate of return method" 2. A common characteristic found in capital investment evaluation methods that use present values is ________. no interest rate an interest rate their ease of use None of these choices are correct. 3. Assume that...
For a typical capital investment project, the bulk of the investment-related cash outflow occurs: During the...
For a typical capital investment project, the bulk of the investment-related cash outflow occurs: During the initiation stage of the project During the operation stage of the project Either during the initiation stage or the operation stage During neither the initiation stage nor the operation stage Evenly during all three stages: initiation, operation, and final disposal The time value of money is explicitly considered in which of the following capital budgeting methods? Payback method Net present value (NPV) method Operating...
14) In a before-tax analysis of a project, which of the following would not affect NPV?...
14) In a before-tax analysis of a project, which of the following would not affect NPV? an increase a change in the estimated scrap value of an asset used solely in the project a change in the expected life of the project a change in the discount rate for the project money already spent on designs for the project in the working capital requirements for the project. a. b. c. d. e. 15) Which of the following ratios gives the...
Which of the following is correct? A. Capital budgeting analysis for expansion and replacement projects is...
Which of the following is correct? A. Capital budgeting analysis for expansion and replacement projects is esentially the same because the types of cash flows involved are the same. B. The replacement decision involves analysis of two independent projects where the relevant cash flows include the initial investment, additiona depreciation, and the terminal value. C. The change in working capital for a project is the difference between the required increase in current assets and the spontaneous increase in current liabilities...
With the improvement in the technology and understanding of discounting techniques, both the net present value...
With the improvement in the technology and understanding of discounting techniques, both the net present value (NPV) technique and internal rate of return (IRR) technique used in capital budgeting analyses have become more popular because these techniques provide decisions that help the firm to a. minimize its overall payback period b.maximize its value c. maximize the initial capital investment d. minimize the number of multiple IRRs computed for every project e.maximize it required rate of return QUESTION 10 Which of...
Capital Budgeting Analysis: The MCSL Corp. is planning a new investment project which is expected to...
Capital Budgeting Analysis: The MCSL Corp. is planning a new investment project which is expected to yield cash inflows of $180,000 per year in Years 1 through 3, $225,000 per year in Years 4 through 7, and $185,000 in Years 8 through 10. This investment will cost the company $880,000 today (initial outlay). We assume that the firm's cost of capital is 7.8%. (1) Draw a time line to show the cash flows of the project. 2) Compute the project’s...
Mastery Problem: Net Present Value and Internal Rate of Return Part One Companies use capital investment...
Mastery Problem: Net Present Value and Internal Rate of Return Part One Companies use capital investment analysis to evaluate long-term investments. Capital investment evaluation methods that use present values are (1) Net present value method (NPV) and (2) Internal rate of return (IRR) method. Methods That Use Present Values Of the two capital investment evaluation methods, a defining characteristic NPV and IRR is that they consider the time value of money. This means that money tomorrow is worth less than money today....
Which of the following are two methods of analyzing capital investment proposals that both ignore present...
Which of the following are two methods of analyzing capital investment proposals that both ignore present value? average rate of return and cash payback method internal rate of return and average rate of return net present value and average rate of return internal rate of return and net present value
Trade Wind's Enterprises Ltd (Tw) has £20 two capital investment projects, which have cash flows as...
Trade Wind's Enterprises Ltd (Tw) has £20 two capital investment projects, which have cash flows as shown below. ,000 that it can invest in any or all of the Comparison of Project Cash Flows* Year of Cash Flow Year 0 Year I Year 3 Type of Cash Flow Project Year 2 (E10 000) Investment Revenue Operating expenses Investment Revenue Operating expenses A. £10000 11,000 30 000 4 889 15 555 B. (10 000) £5 000 10000 2222 15 555 5555...
Which of the following methods will provide a correct analysis for capital budgeting purposes? discounting real cash flows with real rates. discounting real cash flows with nominal rates. Odiscounting nominal cash flows with real rates. all of the above methods will provide similar results A project's Profitability Index is.85 and its net present value of $250,000. Given this information, determine the cost of the project. $135,135 $212,500 $250,000 $294,118
14) In a before-tax analysis of a project, which of the following would not affect NPV? an increase a change in the estimated scrap value of an asset used solely in the project a change in the expected life of the project a change in the discount rate for the project money already spent on designs for the project in the working capital requirements for the project. a. b. c. d. e. 15) Which of the following ratios gives the...
With the improvement in the technology and understanding of discounting techniques, both the net present value (NPV) technique and internal rate of return (IRR) technique used in capital budgeting analyses have become more popular because these techniques provide decisions that help the firm to a. minimize its overall payback period b.maximize its value c. maximize the initial capital investment d. minimize the number of multiple IRRs computed for every project e.maximize it required rate of return QUESTION 10 Which of...
Which of the following are two methods of analyzing capital investment proposals that both ignore present value? average rate of return and cash payback method internal rate of return and average rate of return net present value and average rate of return internal rate of return and net present value
Trade Wind's Enterprises Ltd (Tw) has £20 two capital investment projects, which have cash flows as shown below. ,000 that it can invest in any or all of the Comparison of Project Cash Flows* Year of Cash Flow Year 0 Year I Year 3 Type of Cash Flow Project Year 2 (E10 000) Investment Revenue Operating expenses Investment Revenue Operating expenses A. £10000 11,000 30 000 4 889 15 555 B. (10 000) £5 000 10000 2222 15 555 5555...
Most questions answered within 3 hours.
-
Problem 1: Present entries to record the selected transactions
described below:
(a)
Issued $2,790,000 of 5-year,...
asked 1 minute ago -
Using technology to support HR activities increases:
a.
the efficiency of the administrative HR functions.
b....
asked 2 minutes ago -
1. List the features used to classify leaf
types.
2. List some characteristics that are shared...
asked 7 minutes ago -
The three elements of Value Proposition, Key Customers, and
Capabilities operate within an environment. Which of...
asked 9 minutes ago -
Katelynn, a physician, earns $200,000 from her medical practice
in the current year. She receives $45,000...
asked 17 minutes ago -
Each row of the table below describes an aqueous solution at
25°C
.
The second column...
asked 21 minutes ago -
A horizontal wire is at y = 0. Current travels in the +x
direction. The magnetic...
asked 22 minutes ago -
Let X be a continuous random variable whose PDF is Let X be a
continuous random...
asked 43 minutes ago -
Martinez Company’s relevant range of production is 7,500 units
to 12,500 units. When it produces and...
asked 41 minutes ago -
A football with a mass of 1.2 kg is kicked from ground level to
a height...
asked 47 minutes ago -
Remember: Changes in supply determinants shift supply, and
changes in demand determinants shift demand. We say...
asked 45 minutes ago -
Why is the answer b), for this question? I came up with C) for
my incorrect...
asked 51 minutes ago