“All future costs are relevant.” Do you agree? Why?

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: Define then discuss Value-at-Risk.

A: The stock market is full of new policies and procedures. It get impacted by change in the government…

Q: What will be the Effective Cost of Refinancing?

A: The term refinancing is related to mortgage refinancing, is a system that assists mortgage holders…

Q: Can you make me a comparison and contrast of present value and future value?

A: Financial Accounting:- Financial accounting includes recording, summarizing and reporting a…

Q: All future costs are relevant in decision making. O True O False

A: When we make decision-making, we consider the differential between the costs and the opportunity…

Q: Is there any reason to believe that the project with the lower payback period is the better project?

A: Payback Period: It is the period in which the cost of the project is recovered. Hence, the shortest…

Q: The benefit cost ratio must be greater than or equal to ______for the project to be economically…

A: The Benefit-Cost ratio is found by Dividing the Net Present Value of Benefits of the Project by the…

Q: ta. What is the project's payback?

A: It refers to the time period that is required to get an amount invested in a project with some…

Q: on. What is the maximum profit possible?

A: In the given question, we have to compute maximum possible profit out of the given availability of…

Q: Explain present value, future value, and opportunity cost.  Give an example of each concept.

A: Present value:It is the value at which the current sum of money in difference to some future value…

Q: The overall rate of return needs to be checked for multiple mutually exclusive projects when only…

A: When decision has to be made while comparing one project with other projects and out of which only…

Q: Why do most of the engineers prefer Rate of Return Analysis to the PW method?

A: Answer: They would be calculating the present worth of cash flows using a net present value…

Q: If you are to choose between viability and profitability, which one would you choose? Why?

A: A company's viability indicates that it is (or has the potential to be) profitable. A profitable…

Q: 3. Complete the decision rule for the IRR method. If then the project is economically justified.

A: To select the project based on IRR,  IRR should be greater than required rate of return.  If IRR is…

Q: Future costs that do not differ among the alternatives are not relevant in a decision.

A: In accounting when it comes to making decisions we classify costs into different types or…

Q: If then the project is economically justified.

A: If ERR is HIGHER, then the project is economically justified.

Q: What is the potentially acceptable investment alternative?

A: An alternative investment is a financial asset that doesn't can be categorized as one of the…

Q: ompute the avoidable interest on this project. (Us

A: Loan name Loan amount Interest rate Interest payment frequency 12% Construction Loan…

Q: How can we illustrate Settlement Costs?

A: A cost is a monetary value that is incurred by the company to acquire something or to produce…

Q: Determine the theoretical ex-rights price?

A: The determination of the theoretical ex-rights price is generally done when stocks are issued and…

Q: Which project has no rate of return?

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

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: What is the net present value (NPV) of this opportunity?

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: Why is the contribution margin an important concept forincremental decision making?

A:

Q: LO2 Evaluate whether a project is acceptable.

A: Acceptability of the project can evaluated: 1) Net Present Value: Net present value is the…

Q: 4. Complete the decision rule for the ERR method. If, then the project is economically justified.

A: Project is economically Justified in these cases:

Q: which investment is preferable?

A: The present value is the present worth of the amount that will be paid or received at present.

Q: All future costs are relevant in decision making.” Do you agree? Explain.

A: INTRODUCTION Relevant costs are the costs which are useful for decision making. It is the costs…

Q: How can we consider the Future Worth and Project Balance?

A: The question is based on the concept of evaluation of long term investment, future worth and project…

Q: Which project below would you consider acceptable? One whose IRR is greater than the MARR One whose…

A: Solution: Internal Rate of Return (IRR) is the rate of return which the project yields ie. the…

Q: What is opportunity cost? Select one: O a. It is the cost of the worst opportunity when we choose…

A: Cost: In accounting, the cost is related to monetary value spend on raw material, services, and…

Q: What is the present worth equivalent of the machine considered to be the most preferred choice?…

A: Before investing in new projects, profitability of the project is evaluated by using various methods…

Q: Dis benefits are the future costs of a project that are paid out of its benefits Select one: True…

A: Dis benefits are the estimated costs that can occur in the future while performing the project.…

Q: Discuss the advantages and disadvantages of the Net present value

A: Net present value is the method of capital budgeting that helps in determining the present value of…

Q: hich project should the company pursue? Why?

A: NPV = Present value of cashinflows - Present value of cash outlay.

Q: Question #4 "The higher the minimum desired rate of return, the higher the price that a company will…

A: Yes, I agree that the higher the minimum desired rate of return the higher the price that the…

Q: In what way do free resources becomes economic resources?

A: Economic resources are indeed the tools used to carry out economic transactions. Inputs into the…

Q: “All future costs are relevant in decision making.” Do you agree? Why?

A:

Q: Outline any problems you are aware of associated with the discounting of future costs and benefits…

A: The discounting of future cost means that because that will be incurred in future and discounted…

Q: e. What will be the value of this new balancing item?

A: Note: This whole question is just done by me so on that basis i will answer the part e.   In part D…

Q: Explain Incremental Analysis for Cost-Only Projects?

A: The question is based on the concept of incremental analysis used in capital budgeting.