35. T.F. an investment to equal the initial investment cost. Capital investment
ID: 2590218 • Letter: 3
Question
35. T.F. an investment to equal the initial investment cost. Capital investment decision could include: a. decision about installing new automated materials handling system b. decision to expand production areas by acquiring another building c. decision about purchasing another company. e. all of the above. The payback period is the number of periods it takes for net cash inflows from 36. 37. When considering the time value of money, one uses discounting to find thevalue of money to be received a. average b. future c. historical d. compounded e. present. Which of the following methods for evaluating capital investment proposals recognizers the time value of money? a. payback period b. accounting rate of return. c. net present value d. all of the above e. none of the above. 38.Explanation / Answer
35. The payback period is the number of periods it takes for net cash inflows from an investment to equal the initial investment cost. (True)
36. Capital investment decision could include decision about installing new automated materials handling system, decision to expand production areas by acquiring another building and decision about purchasing another company.
Answer is option (d) all the above.
37. When considering the time value of money, one uses discounting to find the present value of money to be received.
Answer is option (e) present.
38. Net present value is the method for evaluating capital investment proposals which recognizes the time value of money.
Answer is option (c) Net present value.
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