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2 years ago

Which methods of evaluating a capital investment project use cash flows as a measurement basis?

Business

2 answers:

ruslelena [56]2 years ago

8 0

Answer:

Payback Period, Internal Rate of Return, and Net Present Value use cash flows for evaluating capital investment projects.

Explanation:

There are three methods of evaluating a capital investment project that use cash flows as a measurement. These include Payback Period, Net Present Value and Internal Rate of Return. The payback period gives the idea about the time that is required for a person to get back his initial investment. Internal rate of return is used to determine profitability of potential investment. Net present value refers to the difference between the present value of cash outflows and the cash inflows for a specific period of time.

Further explanation:

The Payback period: In this method of payback period, it simply calculates the amount of time that it will take to get one’s original investment back. It helps in analyzing any risks related to investments. An investment with a lesser payback period is seen as a better investment because investor’s original expenses are at risk for a lesser time.

Internal rate of return: Internal rate of return makes use of the discount rates which makes the present value of cash flows in future, equivalent to zero. This strategy helps in comparing the profitability of various investments in different projects.

Net present value: The net present value method makes use of investor's requisite rate of return to compute the present price of future cash flow from the project. Net Present Value is used in creating capital budget and investment planning to estimate the profitability of the project.

Learn More:

Disadvantage of the payback period method : brainly.com/question/13168811 - (Stokholm)

Project acceptance when NPV is used brainly.com/question/13228231 - (Matiasemella)

Keywords:

Capital investment project, cash flow, payback period, internal rate of return, net present value.

bixtya [17]2 years ago

6 0

The method of evaluating a capital investment project that use cash flows as a measurement basis are: Payback period, internal rate of return, and net present value.
- PAyback period, used to determine how much asset is back after the initial saving
- internal rate of return, Used to measure potential profit from an investment
- Net present value, used to determine the worth of all company's assets

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A(n) _______ is a person who engages in leadership activities but whose right to do so has not been formally recognized.

alexdok [17]

Answer:

The correct answer is letter "C": informal leader.

Explanation:

Informal leaders are individuals to whom people put their trust on because they provoke a strong influence within a group or because others see that individuals as examples to follow. However, informal leaders are not officially recognized. Most formalized leaders begin naturally being informal leaders until the collective will of subordinates place them in the position of power.

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2 years ago

Norred Corporation has provided the following information: Cost per Unit Cost per Period Direct materials $ 7.05 Direct labor $

Vikki [24]

Answer:

$134,300

Explanation:

From the question above, we are required to total amount of indirect manufacturing costs that was incurred by Norred corporation with the information that was provided

The first step is to calculate the total variable manufacturing overhead costs

= Variable manufacturing overhead × Units produced

= $1.60 per unit × 8,000 units

= $12,800

Therefore, the total amount of indirect manufacturing costs can be calculated as follows

= Total variable manufacturing costs + Fixed manufacturing overhead

= $12,800 + $121,500

= $134,300

Hence the total amount of indirect manufacturing costs is closest to $134,300

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2 years ago

This year Riley files single and reports modified AGI of $76,000. Riley paid $1,200 of interest on a qualified education loan. W

sleet_krkn [62]

Solution and Explanation:

As per the income tax, if the income of a single taxpayer lies in the range of $65000 and $80000, the taxpayer is elgibile for a prtial deduction on his/her education on loan interest.

The partial interest deduction amount is calculated as follows:

Partial interest deduction allowed = $\text { Interest expense } *(\$ 80000-\mathrm{AGI} / \$ 80000-\$ 65000)$

$=\$ 1200 *(\$ 80000-\mathrm{AGI} / \$ 80000-\$ 65000)$

$=\$ 1200 * \{(580000-\$ 76000 / \$ 80000-\$ 65000)}$

$=\$ 1200 * \$ 4000 / \$ 15000$

= $320

Therefore, the allowed interest deduction in this case is $320.

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2 years ago

Broker Bill has the exclusive listing for Terri’s home. Bill brought Terri an offer from Alexis, which Terri accepted. In order

Marat540 [252]

Answer: Bill's offer is ethical and legal and he can accept compensation for handling the escrow.

Explanation:

An exclusive listing refers to the type of real estate listing agreement whereby a broker is chosen as the sole agent of the seller. It should be noted that the right to retain the property is held by the seller rand has no obligation to the broker.

Based on the information given, it can be infered that Bill's offer is ethical and legal and he can accept compensation for handling the escrow.

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2 years ago

Eric, a ghost writer, conducted market research and discovered a niche market in writing scripts for corporate online videos. He

Lerok [7]

Answer: What is the best way to get his service to his target customers

Explanation:

Market research is the process of determining how viable a product will be after research has been conducted in the market. This is vital in getting opinions of customers.

Marketing mix are the marketing tools which an organization can use in order to pursue its marketing objectives.

The question that should be asked about the marketing mix placement is "What is the best way to get his service to his target customers". This is vital in knowing the best method to use in making the product available to the customers.

7 0

2 years ago