The present worth of an alternative that provides infinite service is called its: a. Net present value b. Perpetual annual cost c. Discounted total cost d. Capitalized cost

Q: which of the following could potentially impact the NPV of a project?

A: Net present value (NPV) analysis is a capital budgeting analysis that helps in evaluating the…

Q: Which of the following is not an advantage of the average rate of return method? a.includes the…

A: Average rate of return is a method of calculating return on the asset

Q: i. The net present value ii. The internal rate of return commend the decision to be made

A: Since in the given case the IRR is higher in machine 1 so it is to be selected.   Assumptions: We…

Q: Write the various applications that call for annual-worth analysis techniques?

A: Annual worth analysis is the analysis which is done by the managers before taking capital budgeting…

Q: _____isthe difference between the gross present value of the benefits of that action and the amount…

A: The difference between the present value of benefits and amount of investment is the key evaluation…

Q: Payback period is the time in which the initial cost of an investment is expected to be recovered…

A: The payback period is the time it takes to repay the cost of an investment or to reach the breakeven…

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: How can we determine the non-recurring costs such as capital expenditure and residual value at the…

A: Non-Recurring Costs: These are the cost that does not re-occur or occur again and again in the usual…

Q: 3. Compute Project Y's accounting rate of return. Project Y Numerator: Annual income Accounting Rate…

A: ACCOUNTING RATE OF RETURNAccounting Rate of Return is one of the Important Capital Budgeting…

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: Give an example of an irrelevant future cost. Why is it irrelevant?

A:

Q: What is the equivalent total investment cost (future worth)?

A: Answer: Equivalent total investment cost (future worth) method discounted cash flow method converts…

Q: What is the economic rationale for the cost approach? Under what conditions would the cost approach…

A: Answer: Economic rationale for cost approach: The cost approach means that the person who is…

Q: This method solves for the interest rate that equates the equivalent worth of a project's cash…

A: Payback period -  Initial investment / Cash flow per year. It is the period taken to recover the…

Q: Question 5: Find the net present value, interpret whether the NPV suggests you should accept or…

A: A. Net Present Value (NPV):Net present value = total present value - initial valueNet present value…

Q: Which of the following payback methods considers the salvage value in its basic computations?

A: Payback method is a capital budgeting technique which is used to evaluate various investment…

Q: Calculating the payback time is the most precise technique to determine the profitability of an…

A: Payback technique helps us to compute the time period in which the project's cash inflows cover the…

Q: Which of the following methods consider the time value of money? A. payback and accounting rate of…

A: Time Value of Money The time value of money is the concept that money you have now is worth more…

Q: market value

A: Market value refers to the estimated worth of asset, which is based on the willingness of the buyer…

Q: Projects with _____are preferred.   O a. Lower payback period.   O b. Normal payback period.…

A: The payback period is a concept of capital budgeting whereby the number of periods is given after…

Q: Assume a project has a discounted payback that equals the project's life. The project's sales…

A: If a project's discounted payback period equals the project's life, it signifies that projest cash…

Q: None

A: Option a: This option is  incorrect because time value of money is the expression of the value of…

Q: Consider IRR on Incremental Investment when Initial IRR Flows are equal?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: How can the Calculation of capital-recovery cost (with return)be done?

A: Capital Recovery Cost: When a company purchases or invest in some assets for the business…

Q: What refers to the present worth of cost associated with an asset for an infinite period of time?…

A: Payback period is the time period of recovery of initial cash outflow from the cash flows of the…

Q: The marginal cost of an asset is equivalent to its EUAC. True or False?

A: Marginal Cost of Asset means the cost required to run the asset for the next period. EUAC =…

Q: If for a certain project the income of the development is received later than the costs are…

A: If for a certain project the income of the developement is received later than the cost are…

Q: What is meant by the incremental cost of refinancing?

A: Refinancing refers to making change in the capital structure of the company by replacing the…

Q: A realized return is the rate of return actually earned on an investment. Group of answer choices…

A: Return: Return is defined as the money attained or lost on an investment through certain time…

Q: What is the process of computing the required annual savings to cover the capital and operating…

A: Answer: NPV is a capital budgeting technique used as it is taken as PV (cash inflows) and PV (cash…

Q: Which of the following statements Is false with respect to the simple rate of return? Multiple…

A: Formula: Simple rate of return = Average profits / Initial investment

Q: Define each of the following terms:b. Incremental cash flow; sunk cost; opportunity cost;…

A: Introduction: This question is related to the concepts of corporate finance. Corporate money…

Q: Annuity Present Value Inputs Payment Discount Rate/Period Number of Periods Present Value using a…

A: Present value of annuity is the present value of all the stream of cash flows that occur in future.…

Q: Which of the following option shows the rate at which company is earning profit? Select one: a. All…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: The advantage(s) of the discounted payback method over the payback method of project analysis…

A: Discount Payback period: It is used to evaluate the capital budgeting projects. Discount payback…

Q: 2. The time period needed to recover the outlay or investment of a project is called: Net Present…

A: The payback period refers to the period that is required to recover the initial cost. With the help…