Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are several capital budgeting decision models that do not use discounted cash flows. What is the name of the simple technique that calculates the

There are several capital budgeting decision models that do not use discounted cash flows. What is the name of the simple technique that calculates the total time it will take to recover, using cash inflows from operations, the amount of cash invested in a project? * Recovery period Payback model External rate of return Accounting rate of return

The technique most concerned with liquidity is * Payback method. Net present value technique. Internal rate of return. book rate of return

The discount normally given to a customer for purchasing large volumes of merchandise * Sales discount Trade Discount Purchase Discount Size discount

Net sales are P6,000,000, beginning total assets are P2,800,000, and the asset turnover is 3.0. What is the ending total asset balance? * P2,000,000. P1,200,000. P2,800,000 P1,600,000.

Bruell Company is considering to replace its old equipment with a new one. The old equipment had a net book value of P100,000, 4 remaining useful life with P25,000 depreciation each year. The old equipment can be sold at P80,000. The new equipment costs P160,000, have a 4-year life. Cash savings on operating expenses before 40% taxes amount to P50,000 per year. What is the amount of investment in the new equipment? * P160,000 P 72,000 P 80,000 P 68,000

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

Accounting Principles

Authors: Jerry J Weygandt

10th Edition

1118009282, 9781118009284

More Books

Students also viewed these Accounting questions