A company is considering a $150,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. nitial investment Required rate of return $150,000 10% Required: a) Compute the net present value of this investment. Present Value of Net

Q: List two advantages of using NPV.

A: Net present value is the difference between the present value of cash inflows and the present values…

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: Miller orr Model describes different levels such as____. a. Upper Limit b. Lower limit c. Return…

A: Cash is one of the important assets for the firm, and it affects the overall liquidity of the firm.…

Q: Define Modified Accelerated Cost Recovery System (MACRS)

A: If a company purchases a fixed asset, the value of the asset cannot be same every year. The value of…

Q: Select a project on the basis of PPB and IRR with a mathematical example.

A: IRR Annual growth rate of growth that is estimated to be generated from an investment.

Q: How might the optimal solution of a linear programming problem be determined?

A: Linear programming problem: Linear programming problem is the method of the business through which…

Q: What are POS Systems? Enumerate their advantages versus manual data collection systems.

A: Introduction: A point of sale (POS) system is used to monitor sales and receive consumer payments.…

Q: Briefly explain the usefulness of a sensitivity graph

A: A sensitivity graph depicts all the assumption results on the final outcome in the exercise of…

Q: Discuss the following. 1. The Advantages of Linear Programming in Decision Making b. The…

A: Advantages of Linear Programming in Decision Making:Optimal Solutions: Linear programming helps in…

Q: How can spreadsheet software, such as Excel, help with sensitivity analysis?

A: Sensitivity analysis: The method used to evaluate and analyze the various reasons for achieving the…

Q: Please work out manually the Covariance with MP.

A: Co-variance   between X and Y means joint deviation of X around X and Y around Y. Formula for…

Q: Illustrates how you may obtain the true IRR by using the Goal Seek function?

A: IRR refers to the rate of return at which the net present value of a project is zero. This is the…

Q: Compute Cohen’s kappa to assess reliability using Rater 1 and Rater 2. Interpret theoutput as in…

A: Suppose we have the following contingency table based on their assessments: Rater 2: YesRater 2: No…

Q: Define the term predictive value.

A: Predictive value refers to the fact that quality financial information can be used to base…

Q: Can you show me how you calculated PV using a

A: Price of bond is the present value of coupon payments plus present value of the par value of the…

Q: rovide another example of a cost center and explain why you choose that example.

A: Cost center is a department or function within an organization that does not directly add to profit…

Q: What are two advantages of ADR? List and provide an example for each.

A: ADR refers to the American Depositary Receipt. ADR is a negotiable certificate which represents a…

Q: Would you please express the operations without excel. I need to understand it with the actual…

A: The price of stock can be found as the present value of growing dividend in two stages one is…

Q: Elaborate/Explain Integer Linear Optimization and give example

A: Answer:- Integer linear optimization is a further version of linear programming where the condition…

Q: Explain a linear cost function.

A: A function where the cost depends linearly upon the number of units produced is called a linear cost…

Q: Describe the three steps in solving a linear programming problem.

A: Linear programming problem: Linear programming problem is the method of the business through which…

Q: What is CVP analysis? Give three examples?

A: CVP Analysis:CVP analysis establishes the relation between cost, volume and profit of the company.…

Q: What is the objective of output controls? List and briefly describe different output controls.

A: Output control guaranteed that the program's result was precise and complete. Output control focuses…

Q: HOW DO YOU ENTER THIS EXACT FORMULA INTO EXCEL? NOT THE RATE FORMULA!!!

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: or working for NPV and EAA calculation?

A: EAA is calculated as shown below. EAA=NPV×r1-11+rnHere,Cost of capital/ WACC=rLife of project=n

Q: Can you explain the formula for computing APR?

A: APR stands for Annual Percentage Rate and denotes the annual rate of interest on a loan or an…

Q: Compare and contrast the following techniques based on costs and benefits: • Test data method • Base…

A: Costs: Costs are the cash expenses that are spent by individuals to buy an asset and pay for…

Q: The most popular method used to calculate VaR is: Group of answer choices B. Parametric VaR D.…

A: VAR is the value at risk. It is used to calculate the maximum amount of loss from a portfolio for a…

Q: Which excel formula is this

A: Solution:- When an equal amount is withdrawn each period, it is known as annuity.

Q: Explain Calculating Total P System Costs?

A: Periodic inventory system also known as P system is a method of stock taking, where stock taking is…

Q: how did you caluclate the table value?

A: In the context of the given question, we are required to compute the table value of factor annuity.…

Q: Can you please provide me some examples or practice problems to calculate allocation rate?

A: Activity based costing (ABC) is the modern method for the classification of various expenses to…

Q: Please explain when you would use the following equation and also explain what each variable…

A: Annuity is number of payments which are equal in size and made in equal interval of time.