What is the statement means?
The repeatability assumption assumes that the economic estimates
for a project's...
What is the statement means?
The repeatability assumption assumes that the economic estimates
for a project's initial useful life cycle will be repeated in all
subsequent replacement cycles.
Shao Industries is considering a proposed project for its
capital budget. The company estimates the project's NPV is $12
million. This estimate assumes that the economy and market
conditions will be average over the next few years. The company's
CFO, however, forecasts there is only a 50% chance that the economy
will be average. Recognizing this uncertainty, she has also
performed the following scenario analysis:
Economic
Scenario
Probability of
Outcome
NPV
Recession
0.05
-$58 million
Below average
0.20
-22 million ...
Which of the following is not an assumption of the one-way
ANOVA?
A. Group means are equal
B. Group variances are equal
C. data between and within groups are independent
D. Observations are normally distributed within groups.
Please explain what the assumption of Cov(x,u)=0 means and why
it is so important for regression to return unbiased estimates of
the relationship of interest.
When a company assumes that there might be an economic downturn,
it reduces the debt of the project.…”Assuming that this is a new
project and cash positive cash flows are sparse, is it then a good
idea to reduce debt? How would this impact future considerations
when additional cash might be needed?
Economic theory assumes that a firm’s goal is to: Multiple
Choice maximize its economic profit. earn an economic profit.
maximize its accounting profit. earn an accounting profit.
Economics assumes firms generally try to maximize profits. This
means that profit-maximizing behavior
is good
is bad
is neither good or bad... but is what we should expect
is immoral but to be expected
Farmer Brian has 3 acres of land which he farms efficiently.
Each acre can support 10 apple trees. However the 3 acres differ in
their ability to support orange trees. He can grow 30 orange trees
on the best land, 20 orange trees on the ok...
a. Economic entity assumption g. Matching principle b. Going
concern assumption h. Full disclosure principle c. Monetary unit
assumption i. Relevance d. Periodicity assumption j. Verifiability
e. Historical cost principle k. Comparability f. Revenue
recognition principle l. Representational faithfulness m. Fair
Value Principle n. Control
Note that each principle or qualitative characteristic
may be matched to more than one phrase or not at all
____ 1. Measuring assets in dollars rather than units.
____ 2. Recognizing revenues when risks and...