A financial manager must choose between four alternative Assets: A, B, C, and D. Each asset costs P35,000 and is expected to provide earnings over a three-year period as described below. Year 1 P20,000 17,000 3,000 6,000 Year 2 P16,000 9,000 22,000 13,000 Year 3 P7,000 21,000 23,000 12,000 Asset B. D

Q: Which capital investment methods require the use of a present value table?

A: Net Present Value: It is a measure of profitability for a project used primarily in capital…

Q: How to correctly find the operating profit? Show an example please.

A: The calculation of operating profit is an important aspect of understanding the financial position…

Q: Whatever demanders want in a product in a quantitative sense

A: In economics, the quantity demanded refers to the total amount of a specific good or service that…

Q: The return on total assets evaluates management's use of resources, essentially evaluating the…

A: Ratio analysis means where the various ratio can be found out with different name and meaning and…

Q: What would be the outputs for the given assumptions:   Total revenue: Total costs: Total profit:

A: Break Even Point is that point at which there is no profit & loss would arise. At break even…

Q: Write the capitalized-cost equation?

A: Answer: Capitalized cost is well-defined as the present value of an annual cost constant over an…

Q: Describe analyzing of profit using contribution margin.

A: The contribution margin ratio is the percentage of difference in a company's sales and variable…

Q: a. Calculate the return on investment. (Round your answer to 2 decimal places.) Return on Investment…

A: Return on Investment: It is a measure of performance and profitability that is applied to evaluate…

Q: How does an “opportunity cost”,  subtracting from the revenue of an alternate course of action,…

A: Opportunity cost: Opportunity cost is a loss of income from one alternative if another alternative…

Q: Describe following:* Market approach* Income approach* Cost approach

A: Market Approach:   Market approach is a method used to assess the value of an asset depending on the…

Q: discuss the advantages and disadvantages of residual income

A: INTRODUCTION: The excess of net income over the required minimum return is known as residual income.…

Q: Which of the following terms accurately describe what a resource is worth in its next- best use. a.…

A: In this question the factor which describes the best worth of resources is asked. We will analyse…

Q: why net present value is considered to be superior to internal rate of return as an investment…

A: Investment- The purchase of an asset in order to generate income or capital gain is referred to as…

Q: What is operating profitability ratio (OP)?

A: These ratios evaluate a firm’s ability to earn profits. They help the stakeholders of the company to…

Q: Which valuation method is dependent on a calculation of terminal value? a) DCF b) Comparable…

A: Option C is correct.

Q: Describe the affects of the present value of an investment.

A: Present value of the investment: Present value of the investment is calculated using the cash flows…

Q: What is more important for asset valuation? Cash flow or accounting profit? Please fully explain the…

A: Introduction:- Any resource that a business or economic organisation owns or controls is referred to…

Q: What variable affecting gross profit should the manager focus his attention? Why?

A: Gross Profit is the profit arrived at by deducting cost of goods sold from the turnover or the…

Q: Determine whether an investment is visible, which factors should be considered?

A: In terms of finance, the term feasibility of a project means to check if the project is economically…

Q: Why is the operating return on assets ratio also referred to as the operating returnon investment?

A: Introduction: Operating asset return is nothing but a profitability measure and it is a difference…

Q: Explain profitability index

A: Profitability index is a financial tool which tells us whether an investment should be accepted or…