We can use double decline to calculate amortization Select one: O True O False
Q: Which of the following are correct regarding the frequency of compounding? Choose two. A) the…
A: The compounding frequency is the number of times interest is paid out or capitalized in the account…
Q: Discuss the differences between using (1) a terminal cap rate and (2) an appreciation rate in…
A: Every property has to be evaluated over the cap rate beforehand it's vended. For the asset being…
Q: Depreciation Inflation Taxation
A: Definition of each of these financial terms along with an example each are provided below:
Q: Decreases in the projected benefit obligation due to an increase in interest rate are called (enter…
A: A projected benefit obligation (PBO) is an actuarial measurement of what a company will need at the…
Q: Which of the following statements regarding capital budgeting analysis is correct? NPV assumes…
A: Capital budgeting is the process of making investment decisions by a company in which different…
Q: Select all of the following that managers can use to evaluate capital invesments. (Select all that…
A: Evaluation techniques of capital investment are performed to arrive at a decision of investment in…
Q: Apply the procedure to find the true IRR, or return on invested capital, of the mixed investment?
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: Which of the following is true of the cash payback period? a.the longer the payback, the longer the…
A: Payback period is the period under which the amount of investment is expected to be recovered.…
Q: The methods of evaluating capital investment proposals can be grouped into two general categories…
A: Capital budgeting is used to evaluate the projects. With the help of capital budgeting, the…
Q: 1.A method of estimating property value by discounting on expected future cash flows to a present…
A: Comment- We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Discounting an investment’s cash flows using the internal rate of return will result in which of the…
A: Introduction: The internal rate of return (IRR) is a research and consulting metric used to assess…
Q: how to get amortization?
A: Amortisation is an accounting technique used to lower down value of loan amount or intangible assets…
Q: Assuming no changes in other variables, which of the following would decrease ROA? B . A decrease in…
A: The Return on assets (ROA) shows just how lucrative a business is with respect to its total assets.
Q: each of the characteristics apply to large deductible plans. A. Degree of loss sensitivity B. Cash…
A: Large deductible plans : It is an employee compensation insurance plan. It is an insurance plan for…
Q: Methods that ignore the time value of money in capital investment appraisal include which of the…
A: Net present value – Net present value is the difference between present value of cash inflows of…
Q: Give at least two reasons for choosing the net present value method and at least two reasons each…
A: Below are the reasons for choosing the net present value method: Time value of money: The net…
Q: All of the following statements regarding NPV are true EXCEPT: a. A positive NPV indicates the…
A: Net Present Value : It is the net of present value of cash inflow and present value of outflow.…
Q: The most accurate way to analyze the profitability of an investment is to compute the payback…
A: Payback period is the period for time taken of project to repay the initial investment. Payback…
Q: Why is it true that a reinvestment rate is implicitly assumed whenever we find thepresent value of a…
A: Discounting is the method of assessing the real value of a potential transaction or collection of…
Q: Calculating the payback time is the most precise technique to determine the profitability of an…
A: Payback technique helps us to compute the time period in which the project's cash inflows cover the…
Q: Capitalized worth method is an effective technique to compare mutually exclusive alternatives when…
A: The capitalized worth method is the method that is used to mutually exclusive alternatives (that are…
Q: Give an example assuming that the Compounding Period equals to Payment Period?
A: The representation on the basis of assumption:
Q: Which of the above statements are correct?
A: Net Present Value: It is the present value of the annual cash flows and the initial cost of the…
Q: Explain planned amortization class (PAC) tranche?
A: A collateralized contract commitment or CMO is a fixed income security that uses mortgage financed…
Q: The values of the future net incomes discounted by the cost of capital are called question Select…
A: Future value/future cash flow discounted by the COC gives Present value/ PV of cash flow.
Q: Describe the process of computing the PW for this infinite series which is reffered to as the…
A: An infinite series of cash flows is also known as “perpetuity”. In the case of perpetuity, a fixed…
Q: 1.True or flase . Even thugh thr amounts and timing of the cash flow may differ, the appropiate LCM…
A: ''Since you have asked for multiple question, we will solve the first question for you. If you want…
Q: Give five difference between straight line method and effective method in amortizing?
A: Solution Bond amortization At the time of issuing the bond , the market rate of interest and the…
Q: When a fixed asset is sold for less than book value, which one of the following will decrease?
A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…
Q: Which of the following statements best describes the difference between the IRR method and the MIRR…
A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…
Q: To find NPV, it requires
A: NPV or net present value technique is used to determine the present value of all future cash flows.…
Q: An advantage of the internal rate of return method is that a.it considers the time value of money.…
A: Capital budgeting is the process of selecting and choosing best alternatives among the available…
Q: Which of the following statements Is false with respect to the simple rate of return? Multiple…
A: Formula: Simple rate of return = Average profits / Initial investment
Q: Insurance value differs from market value in that? a) the value is only attributed to the…
A: Market value It is a price at which the asset will fetch in the market/ investment value community…
Q: What should be the pattern of amortization for a limitedlifeintangible?
A:
Q: explain the unique characteristics of the asset class, their associated risks and potential returns.…
A: The investments can be made using different assets basing on the risk capability and investment…
Q: Which of the following investment appraisal techniques does not involve discounting? a. NPV b.…
A: Investment appraisal techniques are NPV, IRR, ARR, Payback period, discounted payback period,…
Q: Which of the following condition may indicate that OMR has depreciated to EUR? a. Spot rate of…
A: Spot rate is used to make immediate settlement for the purchase of commodity. Future rate is the…
Q: What is the opposite of a vacancy rate? A O Internal rate of return. BO Occupancy rate. CO…
A: The vacancy rate is a percentage measure for all the available rental places that are vacant. The…
Q: Compare capital budgeting decision criteria, Net Present Value (NPV) and Internal Rateof Return…
A: Part (a): Answer: Net present value approach predicts how much a future project would add to the…
Q: How can we invest in two assets with dissimilar return characteristics?
A: Diversification is one of the tactics to keep in mind while forming a portfolio. Investing all the…
Q: Identify the one true statement. a. The B/C method determines the ratio of the present worth of…
A: Capital Budgeting involves long-term planning and monitoring of capital expenditure, besides…
Q: State two assumptions when doing capital rationing using a PW analysis for unequal-life projects.
A: Introduction: The planned structure of the revenue’s cost is known as the budget. The projects that…
Q: Capitalized worth alternatives generally involve revenues, not costs, and the alternative with the…
A: Capitalised worth alternatives means the analysis of present worth of the investment proposals. It…
Step by step
Solved in 2 steps
- How would you describe a planned amortization class (PAC) tranche?Which of the following payback methods assumes that the asset acquired may not last its estimated life. A. Traditional payback B. Present value payback C. Bail-out payback D. Payback reciprocalWhat should be the pattern of amortization for a limitedlifeintangible?
- Methods that ignore the time value of money in capital investment appraisal include which of the following? a. Net present valueb. Discounted payback c. Average rate of return d. All of the aboveWhat do you understand by Capital cost Allowances (CCA)? What is accelerated CCA? Also, can you explain the terms “terminal loss” and “recapture” in context of CCA calculation?In order to calculate the cost of a long-term asset that is financed with long-term debt, present values concepts would be used. Group of answer choices A)True B)False
- State how each of the characteristics apply to large deductible plans. A. Degree of loss sensitivity B. Cash flow possibilities C. Plan flexibilityCompare capital budgeting decision criteria, Net Present Value (NPV) and Internal Rateof Return (IRR).b. Is it possible for conflicts to exist between the NPV and the IRR when mutually exclusiveprojects are being evaluated? Explain.The method that measures a projects return based on present values is the: Internal Rate of Return Discounted Payback Period Modified Internal Rate of Return None of the Above
- After a project has been accepted, the decision to lease or buy is determined by the present value of the lease's cash flows when discounted at the project's risk-adjusted cost of capital. O True O FalseCalculate internal Rate of Return of the project. Should the project be accepted? If reinvestment rate assumption of IRR is changed to cost of capital 11% , what should the modified rate of return ( MIRR)?Describe the Project Cost of Capital: Risk-Adjusted Discount Rate Approach?