How the Income-Tax Rate to Be Used in Project Evaluation?

Q: Define the term elements associated with project financing?

A: Answer: Project financing is nothing but a long term, zero or minimal recourse funding option…

Q: How to analyze capital budgeting decisions? Which measures are important and why?

A: Capital Budgeting process involve analyzing the cash in flow and outflow of a project, to determine…

Q: Which is the most efficient analysis method used to determine the project acceptability on an…

A: Present worth is a financial identicalness approach in which incomes of a venture are estimated at…

Q: Explain Rehabilitation Investment Tax Credits?

A: Income Tax Expenses: The expenses which are related to the taxable income of the individuals and…

Q: the desired amount of funding from external sources

A: When the amount from internal sources is not sufficient, the firm borrows funds from outside. This…

Q: What are some of the tax-factor benefits of capital budgeting?

A: Capital budgeting is a process in which a company procures huge capital to do various potential…

Q: Describe the method used to evaluate investment projects?

A: Answer: The following are the methods are used to evaluate the investment proposals of a company.…

Q: Explain the Calculation of Net Income Attributable to New Project?

A: Answer: Companies regularly estimate the income after meeting all the expenses due to the new…

Q: Who is responsible for the financial evaluation of investment proposals?

A: The question is based on the concept of responsibility for the financial evaluation of investment…

Q: Explain Project Feasibility and Profitability?

A: It is a study containing an itemized portrayal of the project, trailed by a lot of various…

Q: How can the calculation of Net Income Attributable be done to a new project?

A: The question is based on the concept of Net Income Attributable for new projects.

Q: What are the factors affecting the discount rate used in project valuation?

A: Higher discount rate provides less value and lower the discount rate higher the value of the…

Q: Describe the process of making Capital-Expenditure Decisions?

A: Capital Expenditure Decisions include those decisions which require deciding on the purchase of…

Q: Under what circumstances will you prefer profitability index to NPV as project evaluation…

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: How is the project profitability index computed, and what does it measure?

A: Profitability Index Profitability index is define as the ratio of net present value of cash inflow…

Q: How is the selection of the social discount rate in public-project evaluation is as critical as the…

A: The social discount rate helps to perform the PW analysis for public projects. This discount rate…

Q: How are project classifications used in the capital budgeting process?

A:

Q: t are the problems in using the Internal Rate of Return method when making decisions on which…

A: Internal rate of return is rate at which present value of cash flow is equal to the initial…

Q: Describe the project-screening tool method used to evaluate the investment projects?

A: Following are the project-screening tool method used to evaluate the investment projects: The…

Q: How can the Income-Tax Rate be used in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Describe the process of using the Income-Tax Rate in Project Evaluation?

A: The income tax rate is used to determine the cash flow after tax. As cash flow after tax helps in…

Q: Which is the most accurate and commonly-used Investment Appraisal Method?

A: The profitability criteria of a project over the other can be considered by doing an analysis, that…

Q: Are the following capital budgeting or financing decisions?

A: Capital budget involves the evaluation and comparison of costs and benefits from a project. Capital…

Q: Illustrate the conceptual basis upon which the practice of financial project analysis is built?

A: Net present value It is a concept through which the financial project viability can be analyzed. The…

Q: What does effective capital budgeting require?

A: Capital budgeting is the process of evaluating large-scale investments or expenditures. The…

Q: What is the Incremental (Marginal) Tax Rate in Project Evaluation?

A: Tax:   A tax is a compulsory charge or a levy imposed upon a taxpayer by a government organization…

Q: how to assess financial support project whether there is a need to conduct a financial analysis.…

A: Finаnсiаl  аnаlysis  is  the  process of business evaluation.  It reviews past financial performance…

Q: How can we measure the true rate of any internal portion of an investment project?

A: The question is based on the concept of evaluation of different components of a project, it can be…

Q: ) What are the factors affecting the discount rate used in project valuation?

A: Discount rate also called as Weighted average cost of capital is used for discounting future cash…

Q: What do we mean by the economic life of a project?

A: The time span for which an asset or a project generates profits for the owner is known as the…

Q: What are the various costs that must be evaluated in a capital budgetingdecision?

A: Capital budgeting is the process of planning to make a decision to invest in long period investments…

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: make the distinction between c

A: Rate of return refers to the percentage of profit or loss on an investment for a specified period…

Q: Determine the real rate of return of this project on an after-tax basis?

A: The after-tax real rate of return is the net monetary benefit of speculation subsequent to modifying…

Q: How do the engineers make capital-expenditure decisions based on prediction?

A: Capital-expenditure decision The process of decision making with regards to the investment to be…

Q: Should capital budgeting decisions be made solely on the basis of a project’s NPV?Explain.

A: Capital budgeting decisions are based on various factors in which NPV is one of the factors which…

Q: What is the capital expenditures budget?

A: Introduction A Budget is a Financial Plan made for a Future period of time. There are many types of…

Q: What are the government policies that have affect on investment decisions?

A: Government is the super power of the country in which they are appointed. Government has power to…

Q: What tax rate should be used in calculating the taxes on the investment's projected income?

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

Q: How capital expenditure(investment) analysis helps in focusing particular projects and program ?

A: Expenditure in the company can be divided into two parts. Revenue expenditures:- expenditure…

Q: Discuss and evaluate the use of the payback period as an investment criterion.

A: Payback Period: It refers to the period in which a project or an investment recovers its initial…

Q: What is a sunk cost, and if included in a project how should they be treated?

A: Sunk cost is the cost which is already incurred and it is not relevant for decision making. Examples…

Q: Describe the key steps taken in performing benefit-cost analysis for a typical public project?

A: A project is a pre-determined set of activities with a proper start to a proper end. There are…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.