Conducting a preliminary screening of capital investment proposals falls under w

ID: 2456294 • Letter: C

Question

Conducting a preliminary screening of capital investment proposals falls under which stage of the management process?

Planning

Performing

Evaluating

Communicating

While making capital investment decisions, companies set a minimum rate of return to

set the maximum expected returns.

guard their profitability.

cover their fixed costs.

comply with the government regulations.

Which of the following is true of the net present value method?

It measures a project's time-adjusted rate of return.

It discounts cash flows at the minimum desired rate of return.

It ignores cash flows beyond the payback period.

It applies only to mutually exclusive investment proposals.

The undepreciated portion of the original cost of a fixed asset is the

carrying value.

depreciation expense.

residual value.

accumulated depreciation.

Preparing reports related to the capital investment process falls under which stage of the management process?

Planning

Performing

Evaluating

Communicating

Planning

Performing

Evaluating

Communicating

A)Correct option is "a" -Planning is the first step to decide about the feasibilty of capital investment project.

B)correct option is "B" -Guard their profitability - Minimum rate of return is a rate at which cash inflows are discounted as to their yield.

c)correct option is "B"- It discounts cash flows at the minimum desired rate of return

cost of capital is a minimum rate which a project require in order to be profitable.

d)correct option is "A" -carrying value

Carrying value =cost -accumulated depreciation

e)correct option is "D" -communicating

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