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

Q: Discuss Present Value of Perpetuities?

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: Differentiate between price risk and reinvestment risk.

A: Price risk is the risk of decline of the price of the investment or an asset after the underlying…

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: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: Explain the term Present Value of Perpetuities with an example?

A: Present value is the current value of a cash flow that can be occurred in future. Perpetuity is an…

Q: What is tmes-Interest earned?

A: Times-interest earned: This ratio quantifies the number of times the earnings before interest and…

Q: What is the name principal future value a. b. Ob

A: Annuity refers to a series of payments  that are made at equal intervals of time.They can be…

Q: Should the analyses show the sensitivity of the discounted net present value and other outcomes?

A: The question is based on the concept of a sensitivity analysis, used as a analysis tool in capital…

Q: How fair value measurement?

A: Fair Value In Accounting term Fair Value means the recognition of amount which are actually value…

Q: Classify method of comparing economic worth as a ranking method or as an incremental method. a. CW…

A: There are various methods that are used to compare investment alternatives on the basis of maximum…

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: Give an example of the Present Value of Perpetuities?

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

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: Which different terms are used to refer to rate of return?

A: Rate of return is the return that is expected by the investors from the investment made. It is…

Q: Basic Elements of Risk-Adjusted Returns?

A: Introduction: Risk adjusted return is a methodology for calculating and evaluating the returns on an…

Q: present worth analysis, whic

A: Introduction: Present worth analysis is defined as analysis in which the cash flows of the project…

Q: What is the quantitative disclosure of lessor?

A: Definition: Lease: Lease is a contractual agreement whereby the right to use an asset for a…

Q: Which Alternative - if any, Should be selected based upon a present worth analysis?

A: NPV means Net Present Value. "NPV is the differentiation between net cash inflow and net cash…

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: Net income *?

A: Looking the bottom line of the income statement, net income = P650000

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: 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 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: Define the term Equivalent worth-calculation?

A: To define the term Equivalence worth calculation.

Q: Net income will be:

A: Net income can be calculated by using the following formula:

Q: How should changes in the estimated unguaranteedresidual value be handled by the lessor?

A:

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 are the six steps taken to determine the Net-Present-Worth Criterion?

A: The Net-Present-Worth (NPW) criterion is used in capital budgeting to measure the worth 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 Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: profits and losses equally

A: Correct Answer :- B Peter  P170,000. And  john P90000

Q: The DPBP is ideal as a stand-alone measure of economic worth. True or False?

A: Discounted Pay-Back Period or DPBP is period in which discounted value of future cash inflows is…

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: 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…