Define salvage value? Give three examples?

Q: Identify and explain three alternative current asset investmentpolicies.

A: Following are the three alternative current asset investment policies: Maturity Matching, or…

Q: a) What is the NPV for Project A? b) What is the NPV for Project B? c) What is the IRR for Project…

A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: Define Exploration costs.

A: Cost:   It refers to the economic value incurred by the business to manufacture a product or render…

Q: Outline the measures used to describe possible loss accurately?

A: The success of a business depends on how accurately they predict future profit or loss arriving…

Q: Explain renewal probability?

A: Answer: Renewal probability is nothing but the average percentage of renters in a building that is…

Q: ite one example of the “pros-cons” on the use of Asset-Based Valuation and briefly explain

A: Asset-based valuation seems to be a type of business valuation primarily emphasizes on the worth of…

Q: The MARR used for a project’s acceptance or rejection is set relative to what cost?

A: MARR is a discount return which is the lowest rate of return that must be accepted in the project.

Q: Define the term Estimated salvage value?

A: Estimated salvage value It is the evaluated book value of an asset after depreciation is finished,…

Q: In your own view, how important is asset allocation? Discuss the various strategies of asset…

A: Since each asset class comes with a different degree of risk, it becomes important to balance the…

Q: Which are three types of investment flows are associated with buying a piece of equipment?

A: It refers to the activities carried out by a company for acquisition of long-term assets. The…

Q: What are the 3 approaches to appraisal valuation?

A: Appraisal valuation deals with valuation of a property. There are diffreent types of property and…

Q: write three benefits of the knowledge of the time value of money?

A: Time value of money refers to the worth of a money received today is different from a worth of a…

Q: Identify the three items of information necessary to calculate the future value of a single amount

A: Financial Management: In layman’s words, financial management is the management of the finance or…

Q: Explain Present Value?

A: Present value is the current value of a future sum of money or value. Present value is useful to get…

Q: The three factors in cost allocation of a depreciable asset are service life, allocation base, and…

A: Cost accounting system: Cost accounting system of an organization consists of procedures and…

Q: What are four methods for estimating a target’s value?

A: The four methods for estimating the target’s value are discussed as follows: DCF method – This is…

Q: What are the objectives of a fixed asset system?

A: Fixed Assets:   The asset used by company for more than one year is known as fixed asset. Fixed…

Q: What are the three types of project risk?

A: Answer: Investor risk means that an investment’s future return may not be same as anticipated. So,…

Q: An

A: Property Plant and Equipment: It is the tangible asset used in the business to generate revenue. It…

Q: Define net realization value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Define the term Multiple Peril?

A: Multiple-perilIt is the insurance coverage package for small and commercial businesses. It is the…

Q: How is the Salvage value a positive cash flow?

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: Describe the fundamentals of Replacement-Analysis?

A: Replacement analysis is the process where it is determined whether it would be beneficial to replace…

Q: How much is the initial cost of the asset?

A: Purchase price  Less: Trade discount/Rebate  Add: Import Duties  Add: Non refundable taxes  Add:…

Q: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: When using IFRS, an asset's recoverable value is

A: International financial reporting standards (IFRS) are a set of accounting rules and guidelines that…

Q: provide an explanation of the concept of asset acquisition cost

A: The cost incurred in purchasing an asset is referred to as asset acquisition cost. It's beneficial…

Q: Describe the process of Evaluating a Single Project?

A: A single project can be evaluated using quantitative, qualitative or a combination of both. Project…

Q: How can we invest in two assets with similar return characteristics?

A: An asset is something that provides benefits in the future to its owner. There are two types of…

Q: Explain the Redemption process?

A: The question is based on the concept of redemption, which is mainly used for repayment of fixed…

Q: Identify the three items of information necessary to calculate the future value of a single amount.

A: Future value: This is the amount of present value accumulated or compounded at a rate of interest…

Q: Define OEM and EOM? Give three differences between them?

A: Original Equipment Manufacturer (OEM):An original equipment manufacturer is referred to as a company…

Q: what is a provable intrinsic value? can you give a example

A: Intrinsic value of a stock is its fundamental value. This is calculated by taking in to…

Q: What are three tasks of the fixed asset system?

A:

Q: Using the information provided in the following table, find the value of each asset.

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: What are the three types of risk to which projects are exposed?Which type of risk is theoretically…

A: Types of risks associated with the projects are: Budget Risk Time risk Performance Risk Budget…

Q: Briefly explain the three risks of a project? How to measure each risk?

A: Three Basic risks of a project: Cost Risk: The risk that a project may encounter due to excess cost…

Q: useful life

A: The useful life, carrying value and residual value are terms in accounting related to fixed assets.

Q: What is reengineering?

A:

Q: What is the objective of reengineering?

A: The reengineering is also known as Business Process Reengineering (BPR) and it refers to an effort…

Q: Name the three of the most basic tools for assessing project risk?

A: The project risk is an unpredictable occurrence or situation that has an effect on at least one…

Q: Which of the following is the correct calculation of project Delta's IRR?

A: Internal Rate of Return (IRR): It is the rate of return at which a project's net present value…

Q: Which are the four important investment characteristics of the project?

A: Investment:   In a finance perspective, an investment is the purchase of a monetary asset under the…

Q: Briefly explain five basic conditions a scheme of reconstruction must fulfill.

A: Scheme of reconstruction: A Court approved an agreement between a corporation and its shareholder is…

Q: Describe the process to invest in two assets with similar return characteristics?

A: The investment in any asset depends upon the risk and return of the particular asset and security.…

Q: Explain Evaluat ing a Single Project?

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.