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Q: On January 1, 1978, the purchasing engineer of a Cement Co. purchased a new machine at a cost of…

A: Depreciation is an accounting method for dispersing a tangible or physical asset's cost over its…

Q: You just paid $351, 000 for a policy that will pay you and your heirs $12, 300 a year forever. What…

A: In this question we require to compute the rate of return from below details : Price paid for policy…

Q: How is ARR calculated?

A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…

Q: Define total net present value (TNPV)

A: Total net present value of an investment is the present value of the future cash inflows due to a…

Q: Define the term capitalized cost?

A: A Capitalized Cost is the cost incurred in the purchase and financing of fixed assets. It includes…

Q: Tim purchased a bounce house one year ago for $6,500. During the year it generated $4,000 in cash…

A: Given details are : Purchase price of house = $6500 Cash flow during the year form the house = $4000…

Q: DMJ company's December 31 work sheet for the current period appears below. Unadjusted Adjustments…

A: Net Income refers to the income generated by the firm during the period after paying off its revenue…

Q: An investor is told that the following cash flow profile has a present value of $11,500 assuming…

A: Present Value refers to the value of cash flows today which is to be received at some future time…

Q: Define Net realizable value.

A: Net realizable value is the expected cash to be received against a given asset.  Thus, Net…

Q: Falk Inc. has a machine with a book value of $50,000 and a five-year remaining life. A new machine…

A: Continue or replace is one of the decision making analysis that is used by the cost and management…

Q: A firm is considering the purchase of a new machine to increase the output of an existing production…

A: MARR stands for Minimum Acceptable Rate of Return refers to the rate of return a company expects to…

Q: If a company were filing a claim for compensation with an insurance company for manufacturi…

A: Replacement cost: Replacement cost means the cost which the firm would have to incur to replace or…

Q: Margaret has a project with a $28 000 first cost that returns $5000 per year over its 10-year life.…

A: Please find the answer to the above question below:

Q: ffective rate?

A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…

Q: Cost method, Market method

A: There are different methods of pricing a product but the most common are on the basis of cost and…

Q: What is opportunity cost rate?

A: The opportunity cost is the cost of the option or alternative missed due to the acceptance of the…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: What is internal rate of return (IRR) method?

A: NPV shows the excess of PV of all the cash inflows over the initial outlay of the project. It is a…

Q: King Manufacturing Company purchased a bus on January 1, 2016 at a cost of $125,000. The bus is…

A: The depreciation is the expense charged on every asset to reduce its value with the passage of time.

Q: Define the term Income Smoothing.

A: Income Smoothing: It is an accounting technique which is used to move revenues and expenses of one…

Q: How is the term ‘net realizable value’ defined as used in the acronym LCNRV?

A: Inventory: It implies the current asset that is presented on the balance sheet of the company and…

Q: cost benefit model

A: The benefit under the cost-benefit model is calculated by deducting the associated cost from the…

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Explain an example of net realizable value.

A: Net realizable value:   Net realizable value is the net amount of receivables which a business…

Q: Define Net profi t margin

A: Net Profit Margin is calculated by dividing Net Profit by Revenue. It is a financial ratio used to…

Q: What is the meaning of present value (PV

A: Present value could be a concept utilized by investors to calculate the current value of a firm's…

Q: Define value at risk (VaR)

A: Risk is referred as uncertainty or loss. Financial risk is referred as the variability of actual…

Classification Of Risk

Risk means when there could be a possibility that the returns expected from a particular project or investment may or may not match the investor's expectations. In other words, the uncertainty of an income arising from a source that would either be lower than expected or result in losses in risk exposure of the project. The higher the risk involved, the higher is the return expected by the investor as the investor is exposed to a high level of risk. There are various methods by which different types of risk can be assessed and avoided or mitigated.