In measuring the value of a liability, which measurement base uses the discounted future net cash...
In measuring the value of a liability, which measurement base uses the discounted future net cash outflows that are expected to settle the obligation in the normal course of business?
| A. |
Realisable value. |
|
| B. |
Present value. |
|
| C. |
None of the above. |
|
| D. |
Current cost. |
|
| E. |
Historical cost. |
Homework Answers
Add Answer to:
In measuring the value of a liability, which measurement base
uses the discounted future net cash...
The measurement of an asset's value based on the discounted future cash flows relating to the...
The measurement of an asset's value based on the discounted future cash flows relating to the asset is present value. future value. historical value. net realizable value.
11. The net present value is best defined as the difference between an investment's: A) cash...
11. The net present value is best defined as the difference between an investment's: A) cash inflows and outflows B) market value and book value C) cash inflows and cost D) market value and cost E) cash inflows and market value 12. The largest risk of corporate bonds is: A) Interest rate risk B) Default risk C) Business risk D) Liquidity risk E) None of the above 13. Pro forma financial statements can best be described as financial statements: A)...
The ____ of any asset is equal to the present value of its expected future cash flows discounted ...
the ____ of any asset is equal to the present value of its expected future cash flows discounted at the investors required rate of return
The computation of the current value of an asset using the present value of future cash...
The computation of the current value of an asset using the present value of future cash flows method does not include the A. Productive life of the asset. B. Applicable interest rate. C. Future amounts of cash receipts or cash savings. D. Cost of alternate uses of funds given up.
of a project's future cash . .. A project's profitability index is equal to il :...
of a project's future cash . .. A project's profitability index is equal to il : ratio of the _ nows to the project's !! sh line ... Thi nel present value; initial cash outlay present value; depreciable basis net present value; depreciable basis (c! None of the above Twa mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and Pl methods give contradictory results. (a)...
Chapter 4 MindTap To find the present value of a cash flow expected to be paid...
Chapter 4 MindTap To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (1 + r)". What is the value today of a $12,000 cash flow expected to be received eight years from now based on an annual interest rate of 6%? $6,023 O $7,529 O $19,126 O $11,670 Your broker called earlier today and offered you the opportunity to invest in a security....
The present value of an annuity is the sum of the discounted value of all future...
The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. bevinning of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays...
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...
Net Present Value Method Annuity E &T Excavation Company is planning an investment of $386,700 for a bulldoze...
Net Present Value Method Annuity E &T Excavation Company is planning an investment of $386,700 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for five years. Customers will be charged $120 per hour for bulldozer work. The bulldozer operator costs $26 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $20,000. The bulldozer uses fuel that is expected to cost $34 per hour of bulldozer operation. Present Value...
Part Two Net Present Value Method Net present value (NPV) is one method that can be...
Part Two Net Present Value Method Net present value (NPV) is one method that can be used to evaluate the fihancial viability of potential projects. It determines the present value of all future cash flows associated with potential projects and measures this against the cost of the project. To use net present value, a required rate of return must be defined. The required rate of return is the minimum acceptable rate of return that an investment must yield for it...
11. The net present value is best defined as the difference between an investment's: A) cash inflows and outflows B) market value and book value C) cash inflows and cost D) market value and cost E) cash inflows and market value 12. The largest risk of corporate bonds is: A) Interest rate risk B) Default risk C) Business risk D) Liquidity risk E) None of the above 13. Pro forma financial statements can best be described as financial statements: A)...
of a project's future cash . .. A project's profitability index is equal to il : ratio of the _ nows to the project's !! sh line ... Thi nel present value; initial cash outlay present value; depreciable basis net present value; depreciable basis (c! None of the above Twa mutually exclusive investment proposals have "scale differences" (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and Pl methods give contradictory results. (a)...
Chapter 4 MindTap To find the present value of a cash flow expected to be paid or received in the future, you will the future value cash flow by (1 + r)". What is the value today of a $12,000 cash flow expected to be received eight years from now based on an annual interest rate of 6%? $6,023 O $7,529 O $19,126 O $11,670 Your broker called earlier today and offered you the opportunity to invest in a security....
The present value of an annuity is the sum of the discounted value of all future cash flows. You have the opportunity to invest in several annuities. Which of the following 10-year annuities has the greatest present value (PV)? Assume that all annuities earn the same positive interest rate. bevinning of each year An annuity that pays $500 at the end of every six months An annuity that pays $1,000 at the beginning of each year An annuity that pays...
Net Present Value Method Annuity E &T Excavation Company is planning an investment of $386,700 for a bulldozer. The bulldozer is expected to operate for 2,000 hours per year for five years. Customers will be charged $120 per hour for bulldozer work. The bulldozer operator costs $26 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $20,000. The bulldozer uses fuel that is expected to cost $34 per hour of bulldozer operation. Present Value...
Part Two Net Present Value Method Net present value (NPV) is one method that can be used to evaluate the fihancial viability of potential projects. It determines the present value of all future cash flows associated with potential projects and measures this against the cost of the project. To use net present value, a required rate of return must be defined. The required rate of return is the minimum acceptable rate of return that an investment must yield for it...
Most questions answered within 3 hours.
-
Suppose N packets are sent,
and each packet arrives at rate of L/2R to a link....
asked 5 seconds ago -
17. Show the steps involved in reduction of the ketone in fatty
acid synthesis. Which cofactor...
asked 1 minute ago -
5.61 g of octane, C8H18, reacts with excess oxygen in a bomb
calorimeter. The heat capacity...
asked 5 minutes ago -
The velocity field of a flow is given by V = (2+1) x
y2 i +...
asked 14 minutes ago -
(EPS with
Convertible Bonds) On June 1, 2012, Bluhm Company and
Amanar Company merged to form...
asked 11 minutes ago -
2. Discuss why the study exemplifies one that agrees with The
American Psychological Association’s (APA) Ethical...
asked 15 minutes ago -
Without considering the following capital gains and losses,
Charlene, who is single, has a taxable income...
asked 23 minutes ago -
1a. The __________ functional group often triggers our sense of
smell.
1b. The geometry around a...
asked 36 minutes ago -
A uniform plank of length 2.00 m and mass 34.0 kg is supported
by three ropes,...
asked 37 minutes ago -
Suppose a floor on a hospital has 12 physicians at any given
time. You are brought...
asked 51 minutes ago -
Compartmentalization
in eukaryotic cells facilitates chemical reactions happening faster
due to... Select all
Substrates needed for...
asked 38 minutes ago -
The deltaH for the solution process when solid sodium
hydroxide dissolves in water is 44.4 kJ/mol....
asked 40 minutes ago