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How can you calculate Incremental working capital investment rate?
Incremental net working capital investment rate = Incremental working capital investment / Incremental sales.
What are three example of the kinds of decisions where incremental analysis would be used in cost center profit center and investment center?
center
What is the distinction or differences between an incremental cost and sunk cost?
incremental cost are defined as the change in overall cost that result from particular decision making. it include both fixed cost and veriable cost. sunk cost are those cost which are made once and for all can't be altered incremental or decreased by varying the rate of output, nor can they be recovered. for example - once it is decided to make incremental investment expenditure and the fund are allocated and spend
What are some synonyms of the word 'incremental'?
Some synonyms for the word "incremental" are "additive", "additional", and "cumulative". The word "incremental" means to increase something by additions.
Difference between greenfield expansion projects and brownfield expansion projects?
Brownfield ExpansionAn investment that provides incremental capacity to an existing smelter. A greenfield expansion, on the other hand, is one that involves investment in building a new plant.from http://www.alcan.com/web/publishing.nsf/Content/Glossary
What is incremental decision making?
it is the combinatin of the rational comprehensive and the incremental decision making models.
How do sunk costs affect the determination of cash flows?
When evaluating a capital budgeting proposal, sunk costs are ignored. We are interested in only the incremental after-tax cash flows, or free cash flows, to the company as a whole. Regardless of the decision made on the investment at hand, the sunk costs will have already occurred, which means these are not incremental cash flows. Hence, they are irrelevant.
What is incremental decision making model?
it is the combinatin of the rational comprehensive and the incremental decision making models.
What is the opposite of incremental improvement?
If you are asking for a type of improvement that is not incremental, I would say "differential improvement"
Definition of incremental revenue?
Incremental Revenue is the increase of revenue between a new revenue and a previous revenue, thus the formula: Incremental Revenue = New Revenue - Previous Revenue
Deference between prototype and incremental model?
In incremental model the real product is designed, implemented, integrated and tested as a series of incremental builds. while In prototype model the prototype (not the real product) is designed, implemented, integrated and tested as a series of incremental builds
The equilibrium risk-return relationship for a risk-averse individual shows what?
The equilibrium risk-return relationship describes the investment/saving decision of a person based on risk versus return. Generally, a rational person maximises their outcome such that the last unit cost of a little more risk is equal to the incremental return on an investment. Since the cost of risk is an expectation due to uncertainty, different individuals value risk at different levels. A risk-adverse individual will choose a lower equilibrium value of investment/saving because their expected incremental costs from risk are higher than a less risk-adverse person.
