return on investment
Q: Which is the accounting rate of return using the average investment?
A: Summary of the relevant information as provided in the question : cost of investment = £…
Q: Does the accounting (book) rate of return (ARR) method provide a valid (or, meaningful) measureof…
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Q: present worth of this investment.
A: We can populate the cash flows as below and calculate the NPW. Pls note that 24% compounded monthly…
Q: Define the term internal rate of return?
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: Explain return on invested capital (ROIC)
A: Return on invested capital is the return expressed in the form of percentage which a company or an…
Q: future value of the investment.
A: Investment Proposal: Investment proposal is a type of document containing the business terms and the…
Q: How much is BBM investment
A: This is a partnership - admission of a partner question, where the new partner is admitted with…
Q: Use increasing capital investment
A: The capital budgeting is a technique that helps to analyze the profitability of the project and…
Q: Define return rate
A: The return rate can be calculated on various assets and can be used to compare various investments.…
Q: Find 'return on invested capital'.
A: Ratio analysis is a method of analyzing a company's liquidity, profitability, and operational…
Q: e average rate of return on investment,
A: Average rate of return of investment = Average net income * 100/(Initial investment-Salvage value)
Q: Analyze the profitability graph that illustrates the factors/accounts that are needed to calculate…
A: The profitability graph: The profitability graph depicts all the inputs that are needed to compute…
Q: What is the total investment approach?
A: Total Investment Approach: In the Total Investment Approach, there is a risk-return tradeoff in the…
Q: Expected rate of return.
A: Risk-free rate: This can be described as the rate of return of the asset which has zero risks.…
Q: Requirement: 1) Calculate the investment center's Sales Margin, Capital Turnover, Return on…
A: Answer:
Q: What is the significance of finding the internal rate of return?
A: IRR helps to check the viability of the project. If IRR is more than Kc than Project seems to be…
Q: A particular investment's rate of return is referred to as a "return on investment.
A: In response to the question The phrase "financial market" refers to items that are often seen in the…
Q: effective interest rate earned on this investment.
A: Effective Interest rate is the rate that determines the return on the investment. On an investment…
Q: formula for the internal rate of return on this project.
A: Note: Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: ear. Calculate the rate of return of the investment.
A: Rate of return is the internal rate of return earned. Rate of return = 20.00%
Q: The net present value of an investment represents the difference between the:
A: The Answer :
Q: Calculate the average rate of return on the investment.
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Q: Discuss how the Accounting Rate of Return as an investment appraisal method is better than the Net…
A: Accounting ROR or ARR and Net Present Value(NPV) are tools that are used to make selection among…
Q: Describe the affects of the present value of an investment.
A: Present value of the investment: Present value of the investment is calculated using the cash flows…
Q: Internal rate of return
A: Internal rate of return- It is the rate of discount at which the sum of discounted cash inflows…
Q: Define Expected rate of return
A: Introduction: Usually return is a kind of profit that comes from your investment. Example, an amount…
Q: Determine the ending value of the investment. Rate of return = 10%
A: We will assume that the rate of return mentioned in the question is for the end of the period. it…
Q: What do you mean by rate of return on the investment?
A: What do you mean by rate of return on the investment?
Q: Which are the several ways of defining the concept of rate of return on investment?
A: Answer: Return on investments is an instrument which can be used to calculate the company’s…
Q: Determine investment flows, annual operation and recovery.
A: The net annual cash flow is computed by deducting the out-of-pocket and other operating expenses…
Q: Which approach to investment analysis is "best" in terms of accounting for both the timing and…
A: Capital budgeting is a tool or technique that helps to analyze the profitability of the project.…
Q: Explain real rate of return
A: This is the raw rate of return adjusted with inflation. It is used to ascertain the effective return…
Q: Define real rate of return.
A: Real Rate of Return is defined as the rate that has been adjusted for rise in prices of commodities.…
Q: What company is better in short term investment?
A: Answer:- Investment meaning:- An asset or object purchased with the intention of generating income…
Q: What is the return on invested capital (RIC)?
A: Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in…
Q: Explain held-to-maturity investment.
A: Investment: It refers to the process of using the currently held excess cash to earn profitable…
Q: Which investment return, expected or actual, does GAAP allow in the calculation of benefit cost?
A: Benefit cost: When an entity creates a benefit plan setting aside some moneys to meet future…
Q: ) Calculate New Profit Sharing Ratio and Sacrificing Ratio
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Q: Explain realized rate of return
A: The return generated by an investment is any asset class is the normalized rate of return. When the…
Q: Define realized rate of return
A: Return can be defined as the profit or interest earned by the investor on the investment, which…
Q: What is meant by an investment project’s internal rate of return? How is the internal rate of return…
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Q: what is return on investment capital and profitability analysis?
A: Both return on investment and profitability analysis are profitability ratios
Q: Define the term Mean and Variance of an Investment Opportunity?
A: In terms of investment, mean is the average of all the sources of capital contributed with regard to…
Q: Calculate the internal rate of return of each investment opportunity. Daced
A: Internal Rate of Return(IRR) is one of the capital budgeting techniques used for finding the…
Q: Is the accounting rate of return (ARR) the same thing as the return on investment (ROI)?
A: Yes, Accounting rate of return (ARR) the same thing as the Return on investment (ROI). The…
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- Assuming that the net sales and profit remain the same, a company’s return on investment would decrease if the invested capital decreases increase if invested capital increases increase if the invested capital turnover rate increases increase if the invested capital turnover rate decreasesSuppose a company’s return on invested capital is less than itsWACC. What happens to the value of operations if the salesgrowth rate increases?If a firm decreases its operating costs, all else constant, then the: A. profit margin will decrease.B. return on assets will decrease.C. total asset turnover rate will increase.D. cash coverage ratio will decrease.E. price-earnings ratio will decrease Can you give me detailed explanation?
- Which of the following is consistent with an increase in a firm's return on investment? a. an increase in the asset level required to maintain current sales volume b. costs decrease less than revenues do c. costs increase more than revenues do d. an increase in sales revenuesuppose a company's return on invested capital is less than its wacc. what happens to the value of operations if the sales growth increases? Explain your answerA firm with a below industry net profit margin can improve its return on total assets by: a. increasing its current ratio c. decreasing its fixed asset turnover b. decreasing its total asset turnover d. increasing its total asset turnover
- True or False The CFROI is a measure of the dollar surplus value created by an investment or a portfolio of investments. The cash flow return on investment (CFROI) for a firm is the internal rate of return on existing investments, based on real cash flows. If the gross investment in existing assets is reduced, the CFROI may be increased.Which of the following does NOT always increase a company’s MVA? Group of answer choices: Increasing the expected growth rate of sales Decreasing the capital requirements (Capital/Sales) Decreasing the weighted average cost of capital Increasing the expected operating profitability (NOPAT/Sales) Increasing the expected rate of return on invested capitalCalculate Computron’s return on invested capital (ROIC). Computron has a 10% cost of capital (WACC). What caused the decline in the ROIC? Was it due to operating profitability or capital utilization? Do you think Computron’s growth added value?
- Define the term capital intensity. Explain how a decline in capital intensity would affect the AFN, other things held constant. Would economies of scale combined with rapid growth affect capital intensity, other things held constant? Also, explain how changes in each of the following would affect AFN, holding other things constant: the growth rate, the amount of accounts payable, the profit margin, and the payout ratio.Suppose a company increases the price of its product and demand hardly declines.which of the following will increase? A) profit margin B) return - on - equity C) taxes D) all the aboveAn investor wants to determine if his investment in Bulldogs Inc. gives him a good return. Which of the following is the most appropriate to use? a. Times interest earned ratio b. Dividend yield c. Total asset turnover d. Operating profit margin
