Q: Define actuarial rate of return
A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…
Q: What will be the Effective Cost of Refinancing?
A: The term refinancing is related to mortgage refinancing, is a system that assists mortgage holders…
Q: How is ARR calculated?
A: ARR: Accounting Rate of Return (ARR) is the rate of return earned on the investment made in a…
Q: What is physical life of project?
A: Physical life of a project is the duration of time in which the project has been fully used and…
Q: of computing vat payable
A: VAT refers to the type of tax imposed by the government over the sale of goods and services.
Q: What is horizon value?
A: Horizon value is the value of the project or the security at the end of a specified future date. The…
Q: What would the total expense be?
A: Introduction: Income statement: All revenues and expenses are shown in income statement. It tells…
Q: What is factoring?
A: It is a money related service in which the business entity sells its bill receivables to an outsider…
Q: What are solvency ratios and what do they measure?
A: Solvency ratios of the company indicates that whether cash flows of the company are sufficient to…
Q: what is the present value
A: The time value of money means that the amount of money received in the present period will have…
Q: How is the payback period determined?
A:
Q: ffective rate?
A: The given problem can be solved using EFFECT function in excel. EFFECT function computes effective…
Q: What is lessor?
A: A lease is the agreement between two individuals. Under the lease agreement one individual provide…
Q: What is margin call?
A: The margin is defined as the money required from the traders for futures exchanges. It is to…
Q: What is LIBOR?
A: London Interbank bank offering rate (LIBOR): it's a financial interest rate between two bank or…
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: How do you calculate present value?
A: Present value:Present value (PV) refers to the current value of future money.
Q: What is the present value
A: Present Value can be calculated using the following formula: Present Value = Annual cash flow /…
Q: What are Subsequent Events and what do they require?
A: Auditing: It is a systematic verification of the books of accounts of an organization by an…
Q: How is RI calculated?
A:
Q: What is GAAP?
A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…
Q: Describe the potential costs and benefits of LBOs?
A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…
Q: How is materiality concept applied?
A: Accounting principles:
Q: What is the Terminal project balance?
A: Project balance is the amount of money that is remaining in the project. Suppose a project is going…
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: What is the carryover amount?
A: Introduction Capital losses may be defined as the decrease in the value of capital assets of the…
Q: What is a quantity standard?
A: A quantity standard is the amount of materials that should be used in the production of a unit.…
Q: What is the discount factor?
A: Discount factor, also known as the conversion factor refers to the value which is used to calculate…
Q: What is forward points?
A: Forward points are nothing but basis points added or subtracted from the spot rate of an underlying…
Q: a. What is the project's IRR? Note th
A: IRR is the rate at which NPV of a project is 0 which means it is the rate at which company is able…
Q: How do you find full absorption cost
A: Absorption costing refers to the method of managerial accounting in order to capture all the costs…
Q: What is the correct amount of nventory?
A: Goods in transit, shipped at FOB shipping point are to be removed from inventory because they left…
Q: How do I calculate FIFO and LIFO?
A: Meaning of FIFO:First in first out means if company purchases any goods for sale purpose then…
Q: what is materiality?
A: Materiality is an accounting concept that signifies the importance of an item to users of financial…
Q: . What is its present value?
A: Introduction: Compound interest can be defined as the interest on either a loan or a deposit which…
Q: What are the Project Cost Elements?
A: The deliverables such as products or services that a project is intended to create defines the work…
Q: how to calculate FV?
A: Meaning of future value (FV):Future value refers to value of an asset or the value of a sum of money…
Q: What is the machine's payback period?
A: Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash…
Q: What is hurdle rate?
A: Hurdle rate a rate usually used in capital budgeting decisions to calculate the acceptability of a…
Q: what is the total value
A: Introduction: The term perpetuity is also an annuity wherein the series of payments would continue…
Q: What is the project's NPV?
A: Net Present Value: It represents the measure of the profitability of a project or investment in…
Q: Which of the following defines iterative calculation?
A: SPREADSHEET
Q: What is net present value? How does net preset value work?
A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…
Q: What is expenditure? explain types of expenditure?
A: Payments or liabilities incurred in exchange for goods or services are referred to as expenditures.…
The given problem can be solved using the unitary method:
When 20% is 2 tsp then;
100% is 2/20% = 10
Step by step
Solved in 2 steps
- What is the IRR of a project that costs $1,000 now and produces $1,000next year?What is the IRR of a project that costs $1,000 now and produces $500next year and $500 the year after?If a project costs $120,000 and is expected toreturn $40,000 annually, how long does it take torecover the initial investment? What would be thediscounted payback period at i = 15%?
- What is the returnon an investment that costs $1,000 and is soldafter 1 year for $1,060?What amount of money would have to be invested at 4.25% to grow to $15000 after 150 days?What is the internal rate of return (IRR) of a project that costs $20,070 if it is expected to generate $8,500 per year for three years?
- A project costs $1200.00 at the end of the 1st year and the yearly cost increases by $400.00 every year from then on. The duration of the project is 4 years and the interest rate is 8%, what is the equivalent uniform annual cost (EUAC) of this project?What is the approximate maximum amount that a firm should consider paying for a project that will return $15,000 annually for 5 years if the opportunity cost is 10%? Select one: a.$33,520 b $56,860 c. $62,540 d. $75,000What is the NPV of a project with an initial investment of $100, a cash flow in one year of $105, and a discount rate of 10 percent?