Two investments have the following pattern of expected returns: BTCF Year 1 $6,400 Year 1 BTCF $3,400 Year 2 $11,400 Year 2 $5,400 Investment A Year 3 $13,400 Investment B Year 3 $2,400 Year 4 $16,400 Year 4 $6,400 Year 4 (Sale) $134,000 Year 4 (Sale) $194,000 Investment A requires an outlay of $124,000 and Investment B requires an outlay of $134,000.

Q: In general what are the 5 POS Features?

A: A point of sale (POS) system is a combination of hardware and software that allows businesses to…

Q: In general terms, how does IFRS for SMEs differ from full IFRS?

A: International Financial Reporting Standards:   IFRS (International Financial Reporting Standards) is…

Q: How do I compute for the Started,completed, and transferred-out in Weighted Average EUP?

A: Started units are units at total number of units at the start of the process. Completed and…

Q: Compare IRR with MIRR method

A: Internal Rate of Return (IRR) is the rate at which the present value of expected cash inflows is…

Q: Sensitivity Analysis Methods

A: Sensitivity analysis is an analysis method that is used to identify how many variations in the input…

Q: How are gain contingencies recorded?

A: Introduction Gain Contigencies are the uncertain events that result in gain. The gain is purely…

Q: Set out and explain the function of the p/e ratio

A: P/E ratio is a vital valuation ratio used in relative valuation methods. The function of pe ratio…

Q: What are the cell #s in the NPV formula?

A: The difference between the present value of cash inflows and the present value of cash outflows over…

Q: What is factoring?

A: Accounts receivable: It can be defined as the amount owed by the customers from the business for the…

Q: why we o or do not want to create a histogram for each variable

A: The objective of the question is to understand the reasons for creating or not creating a histogram…

Q: What is the relevant range of CVP?

A: Introduction: Cost-Volume-Profit (CVP) analysis, also commonly referred to as break-even analysis,…

Q: What is GAAP in Full

A: GAAP is a combination of set of different policy standards

Q: what method is preferred method IRR or NPV and why

A: This is related to capital budgeting.Both NPV and IRR are tools of capital budgeting that we use to…

Q: Under what conditions will the weighted average and FIFO methods give essentially the same results?

A: Under the FIFO (First in first out) method of inventory valuation, goods which are purchased first…

Q: What are the four basic assumptions underlie GAAP?

A:

Q: Define common size analysis

A: Financial statements are analyzed to determine the profit earning capacity of the business and also…

Q: what formula did you use to calculate PVIFA?

A: The acronym PVIFA stands for the present value interest factor. The present value interest factor is…

Q: Illustrate the CDO Structure?

A: CDO is the abbreviation used for collateralized debt obligation. It is corporate based funanacial…

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: What is GAAP and why it is needed?

A: GAAP - Generally Accepted Accounting Principles

Q: What is multiple IRRs?

A: Multiple IRRs IRR is a discounting rate at which an amount of investment equals PV of the future CF.…

Q: IRR analysis is based on the

A: IRR (internal rate of return) is one of the capital budgeting techniques that is used in order to…

Q: based on the above exercice - On the basis of the data provided at question 6, calculate your…

A: Levered IRR is the Internal Rate of return calculated on the basis of levered free after tax cash…

Q: impact the price of MYR?

A: MYR: MYR refers to the Malaysian Ringgit. It is the currency used in Malaysia. The value of 1 MYR is…

Q: What is CVP analysis? Give three examples?

A: CVP Analysis:CVP analysis establishes the relation between cost, volume and profit of the company.…

Q: Explain partitioning the IRR?

A: IRR partition tool is an important tool in finance. This tool is a very suitable if one wants to…

Q: or working for NPV and EAA calculation?

A: EAA is calculated as shown below. EAA=NPV×r1-11+rnHere,Cost of capital/ WACC=rLife of project=n

Q: What are special allocations?

A: Introduction: Special allocation for a business is considered as distributing profits and losses…

Q: Should NSP have processed each of the products further? What effect does the allocation method have…

A: Sales value at split off method:   Sales value at split off method allocates joint cost to each…

Q: 6. A. What are the reasons why the FIFO method best reflects the results of operations? B. What are…

A: The FIFO method of valuation assumes that the units which are sold first are the units that are made…