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

Q: How to calculate net present value with capital expenditures.

A: Capital expenditure refers to the amount incurred by the busi9ness in purchasing fixed assets for…

Q: What are the absolute measures of investment worth?

A: There are various approaches that can be utilized to decide a value or worth for the venture. Net…

Q: How is the value of an asset determined by predicted future cash flows?

A: The Answer

Q: Why is it important to match your funding with economic life of corresponding asset?

A: The use of assets economic life matching with funding can be an integral tool for financial…

Q: In a theoretical sense, the financial value of any asset is the present value of:

A: The Answer

Q: How do you evaluate an asset whose value is predicated on future cash flows?

A: Assets are the resources that are generally used for the purpose of revenue generation by the…

Q: what is the effect of making changes to net present value calculations

A: Net Present Value = Present value of future cashflows - Initial Investment

Q: Give a conclusion about time value of money and its applications

A: Below is the conclusion about the time value of money:

Q: Explain each of the key factors that the time value of money depends on.

A: Time value of money:Time value of money is one of the most fundamental and basic concept of…

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: What are the Return on Total Assets?

A: Return on total assets: Return on total assets (ROTA) is a ratio that calculates a corporation's…

Q: What is time value of money? Elaborate with examples.

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

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: How is the present value of a lump sum determined?

A: Definition:   Present value: It refers to the current value of the whole amount that will be…

Q: Explain and critically evaluate advantages and disadvantages of fiat money.

A: US dollar, Australian dollar, New Zealand dollar,..... are all fiat currencies , meaning that the…

Q: Briefly explain the following; a. present value of money. b. future value of money.

A: a) Present value of money Answer: The present value is nothing but the actual value of the future…

Q: cash flows versus net income.Which should we use in present value calculations and why?

A: Definition: NPV is the difference between present value of cash flow and present value of cash…

Q: How can we make the equivalence calculations of future worth?

A: Future value is the value of the current or the present amount at future specified time for the…

Q: About cash flows versus net income. Which should we use in present value calculations and why?

A: Net present value is the value of an investment in today’s worth. It is a capital budgeting…

Q: How can we calculate the present worth of actual dollars?

A: Present worth is the current value with a respective rate of return, of a future measure of cash or…

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

Q: What does the rate of return on total assets measure, and how is it calculated?

A:

Q: Explain the Accumulation of a Future Sum?

A: The concept which gives the value or worth of money held today at the future date due to its…

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

A: PRESENT WORTH OF BATCH Depreciation = (50,000 - 6000) / 5 = $8800 P{B} = -50,000 - (10,000) (P/A,…

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: Can the net cash flows be viewed as before-tax values or aftertax values for which tax effects have…

A: Cash flow after taxes (CFAT) investigates the capacity of an organization to deliver income from its…

Q: What is the fundamental argument behind using an opportunity cost as a discount factor in computing…

A: Opportunity cost: This term is very general and can be used on any normal day to day situation. For…

Q: Explain the significance of time value of money in financial valuation?

A: Time value of money means the value of a sum of money in future is not the same as the value of…

Q: How much will be the total amount of remittance to SSS?

A: Remittance of SSS SSS is a type of retirement benefit which are provided to the employees after the…

Q: Define the term Equivalent worth-calculation?

A: To define the term Equivalence worth calculation.

Q: What is the difference between capital expenditure and revenue expenditure?

A: Capital Expenditure: Expenses Incurred and the corresponding benefit out of such expenses lasts for…

Q: What is the difference between a cash basis and an accrual basis measure of performance?

A: Cash Basis :- It is an Accounting Method where Revenue and Expense are identify at the time of…

Q: REQUIRED: ANSWER THE FOLLOWING QUESTIONS IN POINT FORM • What is the difference between book value…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

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: The net present value of an investment represents the difference between the: present value of cash…

A: To determine the value of NPV, NPV is the difference between the present values of future cash flows…

Q: What is meant by the incremental cost of borrowing additional funds?

A: Incremental cost as the name indicates is the additional cost which a borrower will incur if the…

Q: Why does the interest in the original investment or the capital cost is included as a cost in the…

A: The annual worth method is the method in which all the cash flows are equally distributed across the…

Q: What four fundamental factors affect required rates of return(i.e., the cost of money)?

A: The minimum rate that is expected by an investor from the investment made in a project is referred…

Q: Which factor sets an upper limit on how much can be paid for savings?

A: The expected return seems to be the benefit or disadvantage anticipated by a participant on…

Q: Why isn’t accounting net income used in the net present value and internal rate of return methods of…

A:

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: . How does one determine the value of any assetwhose value is based on expected future cash flows?

A: If there is an order of anticipated upcoming cash flows, cash flow technique is one of the finest…

Q: How does discounting, as used in determining present value, relate to compounding, as used in…

A: Future value equals the value of a deposit made today at a future date. Present value equals the…

Q: What Is the term Actual-Dollar Analysis?

A: Dollar analysis is referred as the analysis of dollars by businesses and companies to compare the…

Q: Define the term Return on Total Assets? What does it measure?

A:

Q: Why do the payback period analysis fail to recognize the difference between the present and future…

A: Pay-Back (PB) Period is time in which Initial outlay related to proposed investment is completely…

Q: How is the value of any asset whose value is based on expected future cash flows determined?

A: Answer: When there is a sequence of expected future cash flows, cash flow method is one of the best…