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2 years ago

All else constant, the net present value of a typical investment project increases when:

Business

1 answer:

nekit [7.7K]2 years ago

3 0

Answer:

The correct answer is letter "B": The rate of return decreases.

Explanation:

Net Present Value or NPV is a mathematical calculation used to determine if a project could be profitable or not. NPV is obtained by subtracting the present value of outflows from the present value of inflows, In case NPV is positive, it is expected a project will provide the firm profits, while a negative NPV implies the company incurring in losses.

<em>The Rate of Return (RoR) has an inverse relation with the NPV meaning if the RoR decreases the NPV will increase and vice versa.</em>

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Which statement regarding headings is accurate? Group of answer choices Headings provide visual distraction for readers; thus th

storchak [24]

Headings highlight information and improve readability.

<h3><u>Explanation:</u></h3>

Any documents readability can be improved with the usage of headings. The headings and sub headings of any documents helps in the representation of important concepts and also the ideas that are supporting those main concept. They help in enhancing the importance of the document through the proper visual representation.

The differences that we use in the text of the documents helps the readers in distinguishing the main concepts and ideas from the rest of the text in the documents. Thus, headings will be appearing in a little bigger size and helps in highlighting information and improving readability.

3 0

2 years ago

John Rawls owns and operates Philosophical Consulting, Inc. During 2019 and 2020 he made the following purchases of assets for u

jekas [21]

Answer:

The right solution is "600000".

Explanation:

The given values are:

Cost of office furniture,

= $100,000

Cost of the computer system,

= $500,000

The changed MACRS enables a company to reduce the mortgage balance of such deteriorating properties over time.
Throughout the very first years, MACRS permits quicker depreciation although subsequently slows down depriving. This seems to be fantastic for corporations from a tax point of view.

Now,

The cost recovery deduction will be:

= $Office \ furniture+Computer \ system$

On substituting the values, we get

= $100000+500000$

= $600000$

6 0

1 year ago

Cash Conversion Cycle Zane Corporation has an inventory conversion period of 64 days, an average collection period of 28 days, a

wariber [46]

Explanation:

The computation is shown below

The length of the cash conversion cycle is

= Inventory conversion period + average collection period - payable deferral period

= 64 days + 28 days - 41 days

= 51 days

Now the investment in account receivable is

= $2,578,235 ÷ 365 ÷ 28 days

= $197,782.411

And, the inventory turnover ratio is

Inventory turnover ratio = Sales ÷ inventory

where,

Sales = $2,578,235

And, the inventory is

75 = Inventory ÷ [(0.75 × $2,578,235) ÷ 365]

So, the inventory is $397,330.736

Now the inventory turnover ratio is

= $257,8235 ÷ $397,330.736

= 6.488 times

4 0

2 years ago

Lake Corporation is considering the elimination of one of its segments. The segment incurs the following fixed costs. If the seg

77julia77 [94]

Answer:

the amount of avoidable cost associated with the segment is $754,000

Explanation:

The cost associated with the segment to be eliminated including:

- Advertising expense $140,000

- Supervisory salaries $300,000

- Allocation of companywide facility-level costs $130,000

- The loss for unsold building (*): $60,000

- Maintenance costs on equipment $112,000

- Real estate taxes on building $12,000

The total cost is $754,000

(*) The earning from sold building (book value) = Market value of building $160,000 - Book value of building $100,000 = $60,000

3 0

2 years ago

Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the ________ phase of the st

Rainbow [258]

Answer:

Implementation Phase

Explanation:

After Planning, it is imporrant to carry out clarified Implementation to successfully carry out what need to be done and when. This is important to ensure your plan is achieved without fault. Sweatshop labour which is a situation where workers are employed at low wages and mostlyunder unhealthy conditions to produce products usually occurs during the implementation phase.

7 0

2 years ago

Read 2 more answers