Answer d diff2 terms discountedcash flowdcf methods

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ve: 2 AACSB: Reflective thinking 48) The stage of the capital budgeting process in which a firm obtains funding for the project is the: A) make decisions by choosing among alternatives stage. B) make C) predictions stage. obtain D) information stage. implement the decision, evaluate performance, and learn stage. Answer: D Diff: 1 Terms: net present value (NPV) method Objective: 2 AACSB: Reflective thinking 49) Which capital budgeting technique(s) measure all expected future cash inflows and outflows as if they occurred at a single point in time? A) net present B) value internal rate of return C) payback D) Both A and B are correct. Answer: D Diff: 2 Terms: capital budgeting, NPV method, IRR method Objective: 3 AACSB: Reflective thinking 50) Discounte d cash flow methods for capital budgeting focus on: A) cash inflows B) operating C) income cash outflows D) Both A and C are correct. Answer: D Diff: 2 Terms: discounted cash flow (DCF) methods Objective: 3 AACSB: Reflective thinking 51) Net present value is calculated using the: A) internal rate of return B) required rate of return C) rate of return D) required by the investment bankers None of these answers is correct. Answer: B Diff: 2 Terms: net present value (NPV) method Objective: 3 AACSB: Reflective thinking 52) All of the following are methods that aid management in analyzing the expected results of capital budgeting decisions EXCEPT: A) accrual B) accounting rate-of-return method discounted C) cash-flow method future-value D) cash-flow method payback method Answer: C Diff: 2 Terms: capital budgeting Objective: 3 AACSB: Reflective thinking 53) The capital budgeting method which calculates the expected monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time using the required rate of return is the: A) payback method B) accrual C) accounting rate-of-return method sensitivity D) method net present value method Answer: D Diff: 2 Terms: net present value (NPV) method Objective: 3 AACSB: Reflective thinking 54) Assume in life is to r...
View Full Document

Ask a homework question - tutors are online