Questions from Managerial Accounting

Q: Return on investment may be separated into two components. Name them

Return on investment may be separated into two components. Name them and describe what each can tell you.

Q: Match each of the terms by inserting the appropriate definition letter in

Match each of the terms by inserting the appropriate definition letter in the space provided. Not all definitions will be used. 1. Contribution margin 2. Contribution margin income statement 3. Contri...

Q: Explain the difference between screening decisions and preference decisions.

Explain the difference between screening decisions and preference decisions.

Q: Explain how the internal rate of return and net present value are

Explain how the internal rate of return and net present value are related. If a project has an NPV of $50,000 using a 10 percent discount factor, what does this imply about that project’s IRR?

Q: Why is the net present value method generally preferred over the internal

Why is the net present value method generally preferred over the internal rate of return method?

Q: Briefly explain how the profitability index is calculated and interpreted.

Briefly explain how the profitability index is calculated and interpreted.

Q: Explain the basic difference between future value and present value.

Explain the basic difference between future value and present value.

Q: If you deposited $10,000 in a savings account that

If you deposited $10,000 in a savings account that earns 10 percent, how much would you have at the end of 10 years?

Q: If you hold a valid contract that will pay you $8

If you hold a valid contract that will pay you $8,000 cash 10 years from now and the going rate of interest is 10 percent, what is its present value?

Q: When would you use the PV of annuity table instead of the

When would you use the PV of annuity table instead of the PV of $1 table