True or False If several independent projects are considered, the one(s) with the highest PIs should be chosen If two mutually exclusive projects are under consideration and using the PI for analyzing the projects, then only the one with the higher PI should be selected.

Q: Differentiate between unacceptable investment alternatives and potentially acceptable ones?

A: An unacceptable investment refers to a financial asset or opportunity that carries significant risks…

Q: are the main disadvantages of CAPM model against the advantages of Fama and French three factor…

A: The required rate based on the risk involved in the stock is needed but there are many methods to…

Q: Is the project viable or not? Suggest reasons

A: The viability of a project is examined in a feasibility study to ascertain the likelihood of…

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

A: Answer:   True.

Q: Why is there conflict between the NPV and IRR criteria between projects Y and Z? Which is typically…

A: In this question, we are required to determine the reason for conflict between IRR and NPV. Also, we…

Q: “The inspection point is the key to the allocation of spoilage costs.” Do you agree? Explain.

A: Spoilage: Spoilage is the defective item at intermediate or final stage. The spoilage goods cannot…

Q: What makes indirect benefits so difficult to include in a BCA? What techniques might be used?

A: Indirect benefits are those benefits the return of which cannot be directly observed. Moreover, such…

Q: Is a method of screening out in certain situations an unacceptable investment alternative?

A: Capital budgeting is the technique that is used in business to determine the best investment…

Q: Why the limitation of portfilio analysis is itsuggests the use of standard strategies that can miss…

A: A portfolio is a collection of various investments. Portfolios are a vital part of a corporation…

Q: Why use the high-low method? Multiple Choice It has greater computational complexity. It is…

A: The high-low method is a simple technique used in cost accounting to determine variable and fixed…

Q: Replacement projects are a subcategory of the mutually exclusive projects. True or false?

A: Replacement project:  A replacement project is an undertaking in which the corporation rejects a…

Q: What are the advantages of the scattergraph method over the high-low method? Thehigh-low method over…

A: Introduction: Cost accounting is beneficial since it can demonstrate where a corporation spends…

Q: Explain multiproduct break even analysis. What is the assumption on proportions among the quantities…

A: Multi-product break even analysis means that the  determination of the break even point of…

Q: Sunk costs are easy to spot---they're the fixed costs associated with a decision. Do you agree?…

A: Suck Cost: a cost that has already been spent but cannot be recouped; this kind of expense is…

Q: Which of the following is true?     PMT will either match PV or FV but NOT BOTH     PMT, PV, and…

A: PMT = PMT(Payment) is a fixed payment amount made at regular intervals as part of a financial…

Q: The overall rate of return needs to be checked for multiple mutually exclusive projects when only…

A: When decision has to be made while comparing one project with other projects and out of which only…

Q: If projecst are independent, you can choose ________ project(s). If projects are mutually exclusive,…

A: Correct answer is (a) More than 1 ; only 1.

Q: A project with a negative NPV should be rejected. O True O False

A: Net present value  = present value of future cash inflows discounted at desired rate of return -…

Q: How efficient is an High-low method technique?

A: Using high low method, different types of costs can be separated.

Q: When projects have scale differences, only the Net Present Value method will rank the projects…

A: The method used to find out the present value of future cash inflows and outflows is called as Net…

Q: A project has annual cash flows of $5,000 for the next 10 years and then $9,000 eachyear for the…

A: Working of the NPV is presented: Note: Cash outflows have been calculated using IRR because it is…

Q: Using Put Call Parity, a protective put is equivalent to what simple options position?

A: Put-Call Parity is a fundamental concept in options trading that establishes an essential…

Q: Which method would be more consistent with the matching principle? Why?

A: Definition:

Q: Why do we enter PV and FV as a negative when calculating TVM problems?

A: The term time value of money (TVM) states that the money losses its value over time. It means that a…

Q: Explain the differences between right issues and bonus issues. Your answer should include the…

A: INTRODUCTION: Rights shares are sold at a lower price than the market price. Bonus shares are…

Q: Why not divide the overall design into multiple user viewpoints if you're doing user research?

A: HERE IS THE ANSWER

Q: Does the IRR analysis yield the results consistent with PW and other equivalence methods?

A: Yes, the IRR analysis gives the results consistent with PW analysis and Equivalence methods.

Q: In which situation are the project lives unequal?

A: Answer: A business will face a situation where multiple capital projects display a positive net…

Q: the strengths o

A: Strengths of  scientific approach  Researchers employing survey methods to collect data enjoy a…

Q: Explain the difference between independent and mutually exclusive projects?with examples..

A: Independent Project Independent project means the execution of the project with its cash flow will…

Q: Give an example of a Sensitivity Analysis performed for Mutually Exclusive Alternatives?

A: Mutually exclusive alternatives are those alternatives out of which only one can be selected at a…

Q: Describe the process of Evaluating a Single Project?

A: A single project can be evaluated using quantitative, qualitative or a combination of both. Project…

Q: When does a project deny the merit consideration?

A: Project is assessed on the basis of various important considerations such as profitability, social…

Q: In incremental analysis, only relevant costs are considered when making a decision among…

A: These are the cost that are specific, pertinent and relevant to a particular decision making of…

Q: Explain the relationship between WACC and EVA! demonstrate by providing a complete analysis and…

A: Formula: EVA = Net Operating profit margin(NOPAT) -(Capital employed* WACC)

Q: When you have more than two mutually exclusive alternatives, how can they be compared in pairs?

A: Mutually exclusive alternatives are those in which we can select only one out of various…

Q: How does it compare with the NPV based on the WACC​ method?  ​(Select the best choice​ below.)…

A: WACC can be used as a discount rate to calculate the net present value of future cash flows from a…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.