What are the Replacement-Analysis Fundamentals?

Q: What is sensitivity analysis? Explain.

A: Financial models refer to the summary or brief of a company's performance, on the basis of the…

Q: What are the reasons for preparing horizontal and vertical analysis ?

A: Vertical and horizontal analysis of financial statements is part of financial statement analysis.…

Q: how about the solution of part D?

A: Here, Beta of stock = 1.35 Beta of risk-free asset = 0 Expected return of stock = 16% Risk-free…

Q: The NPV of the replacement is $        ?

A: Net present value is the difference of discounted cash inflows and outflows.

Q: What is the purpose of carrying out an incremental analysis?

A: Incremental analysis is also known as Relevant cost approach Differential analysis Marginal…

Q: WHAT DOES BREAK-EVEN ANALYSIS EXPLAIN?

A: Break Even - Break even is the level of sales wherein the total cost = Total revenue, in simple…

Q: What are the differences between MIRR method and IRR method?

A: The question is related to MIRR and IRR.

Q: From where has the concept DU pont Analysis comes?what’s the formula?

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: What is the Black Scholes Model?

A: Black Scholes Model is an option pricing model.

Q: How to choose a Benchmark?

A: Investors select a market index (or a mix of indices) as the portfolio's benchmark. An index…

Q: Which answer below is the result of this error?

A: In the given case, the journal entry is recorded incorrectly. Due to which the service revenue will…

Q: What are the ramifications of doing a CVP analysis

A: It   is about the ramifications of doing a CVP analysis:

Q: Explain the Sensitivity Analysis?

A: The sensitivity analysis is utilized to comprehend the impact of a lot of autonomous factors on some…

Q: Describe the PW method?

A: There are different types of methods for comparing the worthiness of the projects. Some of the tem…

Q: What is the purpose of a Limit Test?

A: Definition:   Limit test: It checks the data by evaluating it with the predetermined upper and…

Q: What is modified breakeven analysis?

A: Break even analysis refers to the financial computation that weights the new business cost, product…

Q: What does the elimination process accomplish?

A: Intercompany elimination:   Intercompany elimination refers to the process in which the transactions…

Q: What are the Replacement decisions?

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render…

Q: What are the relative merits and disadvantages of a current system survey?

A: System Survey: System survey is defined as the process of determining the elements of information of…

Q: What is residual value? Support your answer with an example

A: Residual value is also called as salvage value

Q: Which method would be more consistent with the matching principle? Why?

A: Definition:

Q: How can sensitivity analysis be incorporated in DCF analysis?

A:

Q: Define the term Multiple Peril?

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

Q: What are the Basic Concepts and Terminology of Replacement-Analysis?a

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: What is the meaning of incoterms

A: International chamber of commerce is the supervisor of international trading, and try to provide…

Q: How are Sensitivty Analysis and Scenario Analysis different in details?

A: Sensitivity analysis is the evaluation of the impact on the project when there may be a few…

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: What are the CVP assumptions?

A:

Q: What is counterbalancing?

A: Errors: The comparability and consistency of the financial statements decreases when a company…

Q: What is sensitive analysis?

A: Sensitive analysis is a method for predicting the outcome of a decision if a situation turns…

Q: What is Hamada equation?

A: The Hamada Equation : The Hamada equation is a method used to analyse the cost of capital of firm.…

Q: What are valid weaknesses of NPO?

A: Not for profit organization have certain weaknesses. some for them are- 1. Limited Purposes In order…

Q: Distinguish between overcosting and undercosting?

A: Over Costing:Over costing is a state in which the estimated or reported cost of a product is more…

Q: Explain Replacement-Analysis Fundamentals?

A: Replacement-analysis fundamentalUnder this, the decision regarding the replacement of obsolete as…

Q: What is the answer of this with solution and explanation.

A: The question is related to adjusting Entires as om 31st December 2018.The details regarding the…

Q: What are the benefits and drawbacks of FIFO?

A: Introduction: First-in-First-Out:  In First-in-First-Out method, the costs of the initially…

Q: What differential analysis and why would we use it?

A: Decision making is the process of taking the decisions based on the costs and different kind of…

Q: straight line method?

A: Depreciation = (Historical cost - Salvage Value)/Useful life  Book Value of Asset = Historical cost…

Q: How can thepayback method be useful?

A: Meaning:   The payback period is the time required to earn back the amount invested in a…

Q: What advantage does scenario analysis have over sensitivityanalysis?

A: In finance, we are required to analyze the change in value of one variable over the change in the…

Q: Which of the following defines iterative calculation?

A: SPREADSHEET

Q: What are the main components of DU pont Analysis? Explain.

A: Introduction Dupont analysis Dupont system of analysis is an approach that can be used to analyse…

Q: Explain differential analysis

A: Differential Analysis involves understanding the purpose of different costs that may arise from…

Q: What are practical weaknesses of NPO?

A: Organizations are described as business units which are established by the individuals, or group of…

Q: How is breakeven analysis different from CVP analysis?

A: Breakeven analysis: It helps to analyze the break-even level of company that is, the level of…