A capital budgeting technique that can be computed by subtracting a project's initial investment from the present value of its cash inflows discounted at a rate equal to a firm's cost of capital is called net present value. True or false.

Harmony forge manufactures saddles for show horses. the company has received a special order for 290 saddles for an international competition. each of these saddles would include the specialized logo of the competition.

Assume that U. S. National Bank has no excess reserves and that the reserve ratio is 20 percent. If U. S. National borrows $5 million from a Federal Reserve Bank through a repo transaction, it can expand its loans by a maximum of A) $1 million.

Knowledge Check 01 Simpson Company purchased $900 of equipment by paying cash and recorded the expenditure as a purchase of land. The error was discovered a week later. Prepare the two journal entries required to correct the error.

Jack has recently been hired as a risk management professional for Blithe Corporation. Blithe has a risk management program in place, but Jack has advised senior management that he would like to design and implement a risk management framework and

You want to have $13,000 in 9 years for a dream vacation. If you can earn an interest rate of. 4 percent per month, how much will you have to deposit today?

A firm producing good y recently increased monthly production from 1,500 units to 2,000 units. this had no impact on the market price of good y. at the new production level of 2,000 units, the firm's average cost is $3.

A master plan is devised for a. emergencies. b. long-range goals. c. investments. d. short-term goals

Adama Company reported a net loss of $6,000 for the year ended December 31, 2014. During the year, accounts receivable increased $15,000, merchandise inventory decreased $12,000, accounts payable decreased by $20,000, and depreciation expense of

2. Which of the following headlines is more closely related to what microeconomists study than to what macroeconomists study? a. Unemployment rate falls from 7.5 percent to 7.3 percent. b. Real GDP falls by 0.4 percent in the third quarter. c.

Scenario 1: suppose savers either buy bonds or make deposits in savings accounts at banks. initially, the interest income earned on bonds or deposits is taxed at a rate of 20%.