Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

No need to explain without explnation just i need option i will rate you The formula of Present Value (Compound Interest) is equal to :

No need to explain
without explnation
just i need option
i will rate you
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The formula of Present Value (Compound Interest) is equal to : PV = FV/(1-r)" PV = FV / (1+r)" PV = FV -(1-r)" PV = FV + (1 -r)" Which of the following is the disadvantage of Net present value method (NPV)? All cash flows are considered Precise measurement of discount rate is difficult Recognizes the time value of money Profitability objective achievement What is a decision criteria for Accounting rate of return (ARR)? Accept if ARR predetermined rate No decisions Criteria is available Accept if ARR = Predetermined rate Payback Period calculated by Management = 3.5 Years Standard Payback Period = 5 Years What decision can the Management take based on payback period? Accept the Project Reject the Project More Calculation needs to be made Decision cannot be taken National Paints has calculated the Net present Value (NPV) for its new chemical plant project Net present Value (NPV) = 2500 What decision should National Paint take based only NPV method? Reject the Project Accept the Project Decision cannot be taken Reject or Accept. Amount in NPV is not important

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial accounting

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel

IFRS Edition

9781119153726, 978-1118285909

More Books

Students also viewed these Accounting questions

Question

How about erroneous payments as a percentage of total payments?

Answered: 1 week ago

Question

What is the age of the first outstanding invoice?

Answered: 1 week ago