Cash flows that could be realized from the best alternative use of an owned asset are called opportunity costs.
cash flows that could be realized from the best alternative use of an owned asset are...
4. 125 points] For the cash flows below, use a capitalised cost method to alternative is best at MARR value of 10% per year. to determine which Alternative 1 Alternative 2 First Cost, S -250000 -160000 Maintenance and Operation Cost S/year 3000 -15000 Cost Every 6 years,S -1000 Cost Every 15 yearss -12000 Salvage Value,S 10000 50000 ife, years 12
Question 11 For the cash flows provided hereunder, answer the questions and determine which alternative is best at an interest rate of 10% Alternative 350,000 150,000 0,000 450,000 First cost, S Maintenance costs, $ 20.000 15,000 ear Overhaul cots in vear 5 10.000 Salvage values, S 8.000 20,000 200,000 Life, years Match the closest correct answers for the below questions: Calculate the Present worth PW of A A. -86,748.66 B. -97,743.33] # Calculate the Annual worth AW of B Calculate...
Question 11 For the cash flows provided hereunder, answer the questions and determine which alternative is best at an interest rate of 10% Alternative 350,000 150,000 0,000 450,000 First cost, S Maintenance costs, $ 20.000 15,000 ear Overhaul cots in vear 5 10.000 Salvage values, S 8.000 20,000 200,000 Life, years Match the closest correct answers for the below questions: Calculate the Present worth PW of A A. -86,748.66 B. -97,743.33] # Calculate the Annual worth AW of B Calculate...
The value of any asset is the present value of the cash flows the asset is expected to provide. The cash flows a business is able to provide to its investors is its free cash flow. This is the reason that FCF is so important in finance. a. True b. False
1. Will is trying to select the best investment from among 3 alternatives. Each alternative involves an initial outlay of 100,000$. Their cash flows returns for each project are as follows (in $): year project C project A 10,000 20,000 30,000 40,000 50,000 project B 50,000 40,000 30,000 min 45,000 55,000 60,000 a) Evaluate and rank each alternative based on the payback period? What are the general problems associated with using this method? b) Evaluate and rank each alternative based...
#5 5) According to the statement of cash flows, cash flows from financing could be positiveo 5) if: A) the firm sold portions of its plant and equipment. B) the firm added more debt than it repaid. C) interest rates were low on outstanding debt. D) the firm repaid more debt than it added.
If a gain of $194000 is realized in the cash sale of a building having a book value of $774000, the total amount reported in the cash flows from investing activities section of the statement of cash flows is $968000. $774000. $194000. $580000
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question 1) Which of the following statements is TRUE for a proprietorship? 1)_ A) The business records include the proprietor's personal finances. B) For accounting purposes, a proprietorship is separate from the proprietor C) Legally, a proprietorship is separate from the proprietor. D) All statements are correct. 2) Revenues are: A) increases in retained earnings resulting from delivering goods or services to customers B) decreases in...
Henry is trying to select the best investment from among 3 alternatives. Each alternative involves an initial outlay of 200,000$. Their cash flows returns for each project are as follows (in $): year project A project B project C 1 110,000 150,000 0 2 120,000 140,000 0 3 130,000 130,000 145,000 4 140,000 0 155,000 5 150,000 0 160,000 a) Evaluate and rank each alternative based...
An asset is projected to generate 6 annual cash flows of $7,000 starting 3 years from today. If the discount rate is 10%, how much is this asset worth today? Round to the nearest cent.