Calculate the turning point of economic efficiency!

Q: Why future value is important to calculate?

A: Future value is the value of what a certain asset/cash/instrument will be worth at a future…

Q: Determine the internal rate of return of a project?

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: How can engineers make capital-expenditure choices that are based on forecasting success?

A: As a result of this forecasting performance, engineers make capital-expenditure decisions will be…

Q: assumptions for the sales growth.

A: An organization always tries to maximize its profit and perform better than earlier. In order to do…

Q: " The sale forecast is the cornerstone for profit planning," why?

A: Definition: Operating budget: The operating budget is that budget that is prepared to plan all…

Q: Can you teach me all of this on how to solve a problem in each topic?…

A: "Since you have posted a question with multiple subparts, we will solve the first three subparts for…

Q: Define an inverted yield curve. What does it indicate?

A: A yield curve is a graph that shows the yields of bonds with different maturities. Normally, a yield…

Q: How can we maximize our return on investment (ROI) and what role does a balanced scorecard play?

A: The return on investment is the measure of total return upon a particular amount of investment made…

Q: Explain with examples that economic incentives are not as complex as we thought.

A: Economic incentives are given to motivate a person to take a particular course of action . Economic…

Q: Explain the Incremental Cost of Refinancing?

A: Answer: If the interest rate on the higher sum of borrowing is greater, then the average cost of…

Q: Explain Project Feasibility and Profitability?

A: It is a study containing an itemized portrayal of the project, trailed by a lot of various…

Q: Breifly explain what "playing the yield curve" means.

A: The yield on a bond refers to the annual return that one gets as a bond matures. A yield curve is a…

Q: What is growth rate?

A: A growth rate is the percentage increase in the cash flows of the company. A growth can be measured…

Q: Explain the relationship between engineering economic analysis and engineering design. How does…

A: Solution: Relationship Between Engineering Economic Analysis And Engineering Design The relationship…

Q: Explain price improvement

A: It is a process where the purchasing customer gets the opportunity to buy shares at a lower cost…

Q: How Broader Diversification Increases Expected Return?

A: The expected return on an investment refers to the weighted average of estimated returns and…

Q: behavioral view” of market efficiency

A: The Efficient Market Hypothesis is usually predicated on the belief that traders and investors…

Q: Discuss the assumptions underlying the Gordon growth model.

A: Gorden Model recognizes that the current market price of the share reflects expected dividends . In…

Q: It is good to compute first the additional benefits that a project can give and the additional cost…

A: Meaning of the given options:: a) Law of supply and demand- The law of demand states that when price…

Q: Discuss how competition is essential for market efficiency.

A: In this question we need to analyze how competition is essential for market efficiency.

Q: What is an internal rate of return and what advantages and disadvantages are accrued by using it to…

A: IRR or Internal rate of return measures the rate of return of projected cash inflows generated by…

Q: What is Working capital efficiency and provide an example of it.

A: We have to comment on working capital efficiency and provide some example.

Q: Define strong form of market efficiency

A: Strong form of market efficiency is considered to be the strongest form of efficient market…

Q: What is the most fundamental factor in engineering economy? a. Compound amount factor b.…

A: Engineering economics is referred to as the subset of economy, which used to be concerned along with…

Q: What do you understand by sustainable development? What is its importance?

A: Sustainable development is the meetings the needs of the present and saving for future.... It means…

Q: How can we calculate the Rate-of-Return with Excel?

A: The question is based on the concept of calculation of rate of return (ROR), (ROR) is percentage…

Q: How can we determine the Incremental Analysis for Cost-Only Projects?a

A: Answer: In capital budgeting, incremental analysis is one of the most common decision making methods…

Q: The constant growth model is useful if?

A: The constant growth model is the model in which growth rate remains same.

Q: What does the usage of technical analysis mean for the theory of market efficiency?

A: Market efficiency:- Market is said to be ‘efficient’ only if the price of every security in the…

Q: Explain profitability index

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

Q: How can we compute the mean return for each project?

A: Mean return refers to the average return that a number of projects of a company earns on an average.…

Q: When does the project reach the payback point?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: EXPLAIN ALL YOU KNOW ABOUT EMT (EFFICIENT MARKETS THEORY).

A: Efficient  market theory  also known as efficient market hypothesis  is a hypothesis that states…

Q: Efficient Market Hypothesis

A: In financial economics, the efficient-market hypothesis (EMH) holds that asset prices accurately…

Q: What do we mean by the economic life of a project?

A: The time span for which an asset or a project generates profits for the owner is known as the…

Q: How is the Rate of return is an intuitively familiar and understandable measure of project?

A: Company enters into diversification once it reaches a profit level. Expanding the business is part…

Q: Why aren't economic incentives as complex as we think?

A: Generally, an incentive means something that motivates a person to do a task/job/goal/etc.…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.