Replacement value coverage is less costly than actual cash value. This is reflected in lower premiums. True False Please Write Step by Step Solution Otherwise I give DISLIKE !!
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- One of the Disadvantages of the method Discounted payback period is Ignores the time value of money Select one: True FalseWhich of the following is a disadvantage of the average rate of return method? a. fails to consider the time value of money b. includes the amount of income earned over the entire life of the proposal c. emphasizes accounting income d. difficult to useHello, I having trouble getting the right answer for Option B "net present value," and the "internal rate of return." The question says to "experiment with alternative discount rates to arrive at a net present value of zero." What exactly am I doing wrong and what steps did I miss to get the correct answer for option B? thank you.
- A decrease in the costs of using an ATM causes money demand to increase. Shifting the Money demand curve to the right.Group of answer choices A. The first statement is false. The second statement is true. B. The first and second statements are both false. C. The first statement is true. The second statement is false. D. The first and second statements are both true.If we use future value rather than present value to decide whether to make an investment, A) we will make a bad decision, since the future value will always be higher if the discount rate is positive. B) we will make a bad decision, since the future value will always be lower if the discount rate is positive. C) we will make the same decision using either future value or present value. D) There is not enough information given to answer the question.Which of the following arguments about time line is right?Group of answer choices a)Time line can be construct for annuity only. b)Time line is useful no matter the payment is constant or not. C)Time line is useless when the cash flow is uneven. d)Time line is only useful when the payment is constant.
- Which of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to useThe discounted payback method is better than the regular payback method because The time value of money is considered. The rate of return is allowed to vary. The concept is based on irregular time periods. None of the above.Cash conversion cycle can be reduced by reducing the payables deferral period which will slow down the payment to suppliers. Is it True or False?
- Internal rate of return (IRR) and net presetn value (NPV): -Generally arrive at the same accept/reject decisions-are less sophisticated than payback period-cannot make use of the same cash flows-can be subsitured for by the payback periodDifferences between the ERR and the IRR include the following: a. The ERR will yield a unique solution (no multiple rates of return as in the IRR) b. In the ERR, funds recovered from the investment are assumed to earn returns equal to the MARR c. The ERR is always a value somewhere between the IRR and the MARR d. All of the above.Which of the following is a disadvantage of the IRR project evaluation method? Question 5Select one: a. It does not take into account the time value of money. b. If there are negative cash flows after positive cash flows, there may be zero or multiple internal rates of return. c. It does not make adequate allowance for risk. d. It focuses on accounting profit rather than cash flow as the source of value.