QuizCh13.pdf - Managerial Accounting Quiz Chapter 13 1....

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Managerial Accounting Quiz Chapter 13 1. When cash flows are uneven and vary from year to year, the internal rate of return method is easier to use than the net present value method. lrue 2. For capital budgeting decisions, the net present value method is superior to the simple rate of return method. @ False 3. When using the payback method, any cash flows for a project that occur after the payback period are not considered in computing the payback period for that project. @ False 4. Amster Corporation has not yet decided on the required rate of return to use in of information will prevent Amster from calculating a project's: Paybaok Net Present Value Internal Rate of Return A. No No No B. Yes Yes Yes C. No Yes Yes CI No Yes No 5. A project's net present value, ignoring income taxes, is affected by: A. the net book value of an asset that is replaced. B. the depreciation on irn asset that is replaced. C. the depreciation to be taken on assets used directly on the project.
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This note was uploaded on 09/08/2010 for the course BUS 21 at San Jose State University .

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QuizCh13.pdf - Managerial Accounting Quiz Chapter 13 1....

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