What is the net income for both options assuming present worth method?

Q: What is the profitability index? When is it used?

A: Capital investment analysis: Capital investment analysis is the process by which management plans,…

Q: What is market value ratio?

A: Ratio is the relation between two different quantities obtained after dividing one by another.

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Comment- Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: What is the marginal rate of return? How is it calculated?

A: Answer: Marginal rate of return can be defined as the return obtained or received by means of…

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: Write the capitalized-cost equation?

A: Answer: Capitalized cost is well-defined as the present value of an annual cost constant over an…

Q: Nhat is the exact rate of return?

A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…

Q: How to calculate Present Value Interest Factors?

A: PVIF is known as Present Value Interest Factor. PVIF refers to a factor that is very useful in…

Q: What is the equivalent total investment cost (future worth)?

A: Answer: Equivalent total investment cost (future worth) method discounted cash flow method converts…

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: Which are the two computational schemes for calculating this earned interest yield?

A: The two computational schemes for calculating the earned interest yield are compound interest scheme…

Q: Option A Option B $ Net Present Value Which option should be accepted? should be accepted.…

A: The decision regarding to make the investment in the option between the two options available to the…

Q: Summarize the basic procedure of Net-Present-Worth Criterion?

A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…

Q: What is annual worth method, future worth method, and present worth method in comparing alternative,…

A: There are various alternatives for a project or investments that can be undertaken or chosen by the…

Q: What is current market value? Describe about it.

A: Market value: Market value is the price at which, both seller and buyer agree to exchange the…

Q: Give an example of the Present Value of Perpetuities?

A: Perpetuity is a continuous annuity, a progression of equivalent interminable cash flows happening…

Q: difference between internal rate of return and net present value?

A: Difference between internal rate of return and net present value?

Q: Will some of the parties receive a preferred return? Will the preferred return be paid from annual…

A: The preferred return is a distribution of profit earned by the organization to their elite class of…

Q: choose the best alternative A or B using net present worth method ?

A: The net present value is one of the modern methods used for evaluating the feasibility of a…

Q: Which you prefer, equity or fixed income?

A: Differences between equity and fixed income: Equity: Corporates issues most of the equity There is…

Q: How can we use the market interest rate to find the net present worth?

A: Investors often find the present worth of the fund flows because investors receive the funds at…

Q: Compare the mutually exclusive alternatives based on the rate of return?

A: Mutually exclusive projects are the projects out of which one best project is selected due to lack…

Q: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: How can we calculate the net present worth of each payment?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: Which one of the following methods of analysis is most appropriate to use when two investments are…

A: Capital budgeting techniques such as internal rate of return, net present value method, average…

Q: What should be done to find the equivalent present worth of the actual dollar amount?

A: Present value is the concept of discounting future value to bring it to today’s worth.

Q: What is the single-payment present-worth factor?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What are the different terms used to refer to the rate of return?

A: Rate of return is an expected profit on an investment by a investor. It is a rate at which investor…

Q: What is the net present value method?

A: Net Present Value Method: It is the present value of the annual cash flows and the project initial…

Q: What is the projected net income?

A: A budget can be defined as a quantitative statement developed to ascertain the funds required…

Q: What are the measures of investment worth based on yield? What are they called?

A: Investment worth based on yield means that an investor is expecting certain income on an investment…

Q: Describe the method of developing a Present Worth Distribution?

A: Present value or Present Worth of an investment or a project is the value of future cash flow…

Q: Illustrate the market interest rate to find the net present worth?

A: Investors frequently find the present worth of the fund flows for the reason that savers receive the…

Q: What is the internal rate of return? How is it used? How does it relate to the concept of compound…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Describe the process of Calculating Present Worth?

A: Step-1: The initial invested amount should be ascertained and the initial investment is the sum…

Q: what is the difference between a required rate of return and an expected rate of return?

A: Rate of return (ROR) is a value at which an investor earns additional amount on invested amount…

Q: What is market Value added? What is economic value added? What is the difference between what each…

A: Market value added is the amount of wealth that the company is able to create for its stakeholders.…

Q: Why are the net-present-value and internal-rate-of-return approaches ranked differently for…

A: This question explains about  the net-present-value and internal-rate-of-return approaches ranked…

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: What is the relationship between a discount rate (or IRR) and a capitalization rate? What causes…

A: Introduction: The discount rate is nothing but a rate that reduces potential cash flows in order to…

Q: economic entitiy assumption

A: Accounting Assumptions:                      Accounting professionals are guided by the accounting…

Q: What is a “required rate of return”? Why is it called the “cost ofmoney” or the “price of money”?

A: The required rate of return can be calculated by two methods, 1) Gordan's growth model  Gordan's…