une Required: Compute the follow 1. Estimated variable ra

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: Describe in words how an NPV profile is constructed. How do you determine the intercepts for the x…

A: NPV profile means the graph which depicts the Net present value of the project at various discount…

Q: Define Net realizable value.

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

Q: Which cell or column is used for the covariance?

A: Here, Probability Stock Fund Rate of Return A B 0.1 -34% 0.2 -20% 0.3 21% 0.4 36%…

Q: Which of the following is not an approach to compute equivalent units? Multiple Choice All of these…

A: Equivalent Units :— Number of incomplete units are assumed to be equivalent to completed units when…

Q: Define each of the following terms:d. Flotation cost, F

A: Primary market is the place where company sells or offers new equity shares to the investors. New…

Q: Distinguish betweenproduct costs and periodcosts and give examplesof each.

A: Product cost: The product cost relates to the manufacturing costs such as direct material, direct…

Q: Explain when to use the single-period model and when to use a multi-period model.

A: The difference between the two models is that the multi-period model may involve the stock leftovers…

Q: what are the major assumptions in making this estimate for REV?

A: Analyst estimates the worth of the real estate for the clients because now the investors have also…

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: The most popular method used to calculate VaR is: Group of answer choices B. Parametric VaR D.…

A: VAR is the value at risk. It is used to calculate the maximum amount of loss from a portfolio for a…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: How does the computation of equivalent units under the FIFO method differ from thecomputation of…

A: Equivalents units for production: The activity of a processing department in terms of fully…

Q: Define each of the following terms:f. Residual value

A: Introduction: Residual value is one of the elements of leasing computation or process. It defines…

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: Common sized statement  need help on part a finding the %

A: A common size income statement is a statement of company’s income in which each line item is…

Q: when NPV is greater than zero the PI will be greater than zero, greater than one, less than one, or…

A: Net present value NPV is a technique used in capital budgeting for evaluating the project's…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.