Finance quiz 7 answers - Finance Quiz 7 1 The process of...

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Finance Quiz 7 1. The process of identifying which long-lived investment projects a firm should undertake is known as: 1 . capital hedging. 2 . capital spending. 3 . capital investment. 4 . capital budgeting. 10 points QUESTION 2 1. The main virtue of the payback method is its: 1 . simplicity. 2 . completeness. 3 . thoroughness. 4 . complexity. 10 points QUESTION 3 1. The payback method: 1 . is the amount of time it takes for a project to recoup its profits. 2 . is never used by businesses today. 3 . fails to explicitly consider the time value of money.
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Finance Quiz 7 4 . is the best method for evaluating complex projects. 10 points QUESTION 4 1. The preferred technique for evaluating most capital investments is 1 . payback period 2 . internal rate of return 3 . discount payback period 4 . net present value 10 points QUESTION 5 1. Potential problems in using the IRR as a capital budgeting technique include: 1 . the timing problem 2 . multiple IRRs 3 . the scale problem 4 . all of the above 10 points QUESTION 6
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Finance Quiz 7 1.
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