Answers8 - e 1. a. b. c. d. e. The length of time required...

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e 1. The length of time required for a project’s discounted cash flows to equal the initial cost of the project is called the: a. net present value. b. internal rate of return. c. payback period. d. discounted profitability index. e. discounted payback period. c 2. A situation in which accepting one investment prevents the acceptance of another investment is called the: a. net present value profile. b. operational ambiguity decision. c. mutually exclusive investment decision. d. issues of scale problem. e. multiple choices of operations decision. e 3. Which of the following are capital budgeting decisions? I. determining whether to sell bonds or issue stock II. deciding which product markets to enter III. deciding whether or not to purchase a new piece of equipment IV. determining which, if any, new products should be produced a. I only b. III only c. II and IV only d. I, III, and IV only e. II, III, and IV only c 4. You are comparing two mutually exclusive projects. The crossover point is 9 percent.
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Answers8 - e 1. a. b. c. d. e. The length of time required...

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