Explain present value, future value, and opportunity cost.  Give an example of each concept.

Q: What is the Economic Value Added (EVA) method? Provide a definition, state a formula, and define all…

A: Economic Value Added (EVA): EVA also called economic profit is a measure of the financial…

Q: Define then discuss Value-at-Risk.

A: The stock market is full of new policies and procedures. It get impacted by change in the government…

Q: Which of the following best defines the concept of a relevant cost? a. A past cost that is the same…

A: Relevant Cost: it is a cost which is used for taking decision  for the business management. this…

Q: Can you make me a comparison and contrast of present value and future value?

A: Financial Accounting:- Financial accounting includes recording, summarizing and reporting a…

Q: Label each of the following statements as either true (“T”) or false (“F”). An opportunity cost is…

A: Answer:   True.

Q: Please solve using Rate of Return method.

A: Rate of return is the rate at which return is expected from any investment. This defines the gain or…

Q: Explain price improvement

A: It is a process where the purchasing customer gets the opportunity to buy shares at a lower cost…

Q: What is the relationship between present value and future value?

A: Future Value : FV is that value which will be received in near future. Present Value : PV is that…

Q: Explain any one pros and cons of historical cost.

A: Historical cost is one of the four basic accounting principles. This method is used under Generally…

Q: how present value is useful in economic decision making

A: Present value (PV) is the current value of a future sum of money or a stream of cash flows, given a…

Q: Explain Present Value?

A: Present value is the current value of a future sum of money or value. Present value is useful to get…

Q: e present value and future v

A: Given information : Quarterly payments 2000 Time period (years) 5 Interest rate 6.50% The…

Q: What is opportunity cost rate?

A: The opportunity cost is the cost of the option or alternative missed due to the acceptance of the…

Q: Explain the net present value formula and also explain what the net present value represents.

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: PROVIDE - PRESENT VALUE, FUTURE VALUE, AND internal rate of return (IRR)

A: Present and Future Value: The current value of a cash flow that is expected to occur at some time in…

Q: How do you calculate present value?

A: Present value:Present value (PV) refers to the current value of future money.

Q: Define the term “opportunity cost.” How may this cost be relevant in a make-or-buy decision?

A: Cost is defined as the total amount of money spent by the company for the production or creation of…

Q: Explain the concept of a present-value analysis.

A: Present value (PV) is discounted value of future cash flows to be received at a particular rate of…

Q: compare Future Value and Present Value?

A: The comparison between present value and future value is as follows:

Q: Explain an example how to determine the future value.

A:

Q: The costs most relevant to be used in decision making are: a. sunk costs O b. current costs O c.…

A: Cost: It implies to the expense that is incurred on the manufacturing of a product or rendering…

Q: How can we calculate the Total Present Cost for the Base Case and Alternative?

A: The question is based on the concept of calculation of cost benefit analysis of base case and…

Q: Think of two [ of your ] real life examples about objective principleThink of two [ of your ] real…

A: Objective principle: The objective principle states that all the accounting information should be…

Q: What formula to use to find Payback Period and NPV? (in Excel)

A: NPV or Net Present Value is the present value of all net cash cashflow on a provided discount rate.…

Q: Describe the Replacement Analysis using the Opportunity-Cost Approach?

A: The company always considers the replacement projects when the old machinery or plant in the project…

Q: Beside the dollar cost, what other costs should you consider when comparing alternative solutions to…

A: There could be lot of factors which are to be considered while comparing alternative solutions to a…

Q: Discuss the FOUR basic steps in benefit-cost analysis, which aspect of benefit-cost analysis would…

A: Cost-benefit analysis or CBA is referred to as the prices, which helps in measuring the benefits of…

Q: All future costs are relevant in decision making.” Do you agree? Explain.

A: INTRODUCTION Relevant costs are the costs which are useful for decision making. It is the costs…

Q: Define “Market Value Added (MVA)” and “Economic Value Added(EVA).”

A: Introduction: Economic value added (EVA) and Market value added (MVA) are computations utilized to…

Q: Define opportunity cost

A: Opportunity costs represent the benefits an individual, investor or business misses out onwhen…

Q: Define the term an incremental benefit-cost ratio?

A: The incremental cost is the additional cost incurred for producing an additional one unit of a…

Q: Explain what opportunity cost is. supplement the explanation with an appropriate example

A: The decision to choose one from given alternatives leads to concept of opportunity cost.

Q: Present Value versus Future Value

A: Present value is the amount at time "t=0". This is the value of an investment today or in present…

Q: What is an opportunity cost? How is this concept used in TVM analysis, and where is itshown on a…

A: The term opportunity cost from the economics view point is defined as the benefits that have been…

Q: Discuss the advantages and disadvantages of the Net present value

A: Net present value is the method of capital budgeting that helps in determining the present value of…

Q: What is opportunity cost? How is this concept used in TVM analysis, and where is it shown on the…

A: Opportunity Cost is the cost of the next best alternative forgone. In other words, it is the return…

Q: Outline the rules for identifying the optimal transfer price.

A: Transfer pricing:- Transfer pricing is considered as the value that is attached to those goods and…

Q: Explain the process of Rate-of-Return Calculation with Excel?

A: Rate of return is the rate expressed in terms of percentage which an investor expects from the…

Q: Outline any problems you are aware of associated with the discounting of future costs and benefits…

A: The discounting of future cost means that because that will be incurred in future and discounted…

Q: Define the term opportunity cost, and give an example of one.

A: Opportunity cost: It is the benefit which is foregone by choosing next best alternative. In mutually…