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    Claudette Clemente
    This document contains information about capital budgeting projects, methods, and key terms. It provides cash flows, costs of capital, payback periods, and net present values for various companies. It also contains true/false statements and questions regarding capital budgeting concepts like internal rate of return, net present value, identification stage, and sunk costs.

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    Quiz Later

    Uploaded by

    Claudette Clemente
    57 views2 pages
    This document contains information about capital budgeting projects, methods, and key terms. It provides cash flows, costs of capital, payback periods, and net present values for various companies. It also contains true/false statements and questions regarding capital budgeting concepts like internal rate of return, net present value, identification stage, and sunk costs.

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    This document contains information about capital budgeting projects, methods, and key terms. It provides cash flows, costs of capital, payback periods, and net present values for various companies. It also contains true/false statements and questions regarding capital budgeting concepts like internal rate of return, net present value, identification stage, and sunk costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    57 views2 pages

    Quiz Later

    Uploaded by

    Claudette Clemente
    This document contains information about capital budgeting projects, methods, and key terms. It provides cash flows, costs of capital, payback periods, and net present values for various companies. It also contains true/false statements and questions regarding capital budgeting concepts like internal rate of return, net present value, identification stage, and sunk costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    1. Heddy Company 3.

    68 years
    2. Jupiter Company 190K
    3. BeeGuds 15K
    4. Statement 1: Payback method Only statement 2 is correct
    5. Statement 1: The book value of an Only statement 2 is correct
    existing equipment
    6. Statement 1: The firms objective in using Both are true
    capital budgeting
    7. Gro-well 74,830
    8. A firm with an 18% cost of capital (265,460)
    9. This is a stage in capital budgeting Identification stage
    10. A proposed capital budgeting project Between 3 and 4 years
    11. A cost that is shared by all
    12. Which one of the following statements is If the IRR is equal
    correct regarding the Net Present Value (NPV)
    and the Internal Rate of Return (IRR)
    approaches to capital budgeting ?
    13. Statement 1: Three of the four capital
    budgeting screening methods (Net Present
    Value, Internal Rate of Return and Payback
    Method) rely on the relevant expected cash
    inflows and outflows, whereas one (the Accrual
    Accounting Rate of Return Method) utilizes
    relevant accounting incomes and expenses
    14. If an investment project has a negative The IRR is less
    15. Testra Foods 3.3 years
    16. It measures all of the expected NPV
    17. Garfield 24K
    18. Which one of the following procedures would Post audit
    most likely help managers identify errors in
    their capital budgeting decisions?
    19. Doria Chung Yes, she should
    20. Yipann 38,321
    21. A firm with an 18% cost of capital (%) 20%
    22. Yipann (NPV) 10,450
    23. The Moore Corporation (105K)
    24. A company is considering 2 investments
    25. The Moore 63K
    26. Kore Industries 12K
    27. The Keego Company 18,800
    28. The Moore (3rd year) 68,400
    29. The NPV and the IRR Under NPV and IRR, INTERNAL RATE
    30. Statement 1: Capital budgeting refers to
    31. Capital Invest Inc. Project 234
    32. Is one that Sunk Cost
    33. Yipann (traditional payback ) 2.250 years
    34. A proposed capital budgeting project has a Less than 5 yrs
    discounted payback period of 5 years when a
    10% cost of capital is used. The project has
    cash flows that will be positive for years 1
    through 7. The undiscounted payback period
    of the project is
    35. Yipann (accounting rate of return) 18.1 %
    36. McLean 30,910
    37. Statement 1: Capital budgeting is a
    decision making tool
    38. This is a stage in the capital budgeting process
    where a company must consider the expected
    costs and benefits (quantitative and
    qualitative) of alternative capital investments.
    There are four main steps in this stage for
    determining net cash flows for each potential
    project it has identified.

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