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Unformatted text preview: of accounting income (or reduction in costs) c.) Project acceptance decisions are based on models that explicitly incorporate the time value of money d.) Need to incorporate income-tax effects in the analysis, for both revenues (gains) as well as expenses (losses) e.) Discounted cash flow (DCF) decision models are used by a majority of large organizations 5.) Given the same total cash flow returns (CFRs) the internal rate of return (IRR) method of capital budgeting would favor a proposal having yearly CFRs that were: a.) Even b.) Uneven c.) Heavier towards the end of a proposal’s life d.) Heavier towards the beginning of a proposal’s life e.) Heavier towards the middle of a proposal’s life 6.) When using relevant cost analysis, it’s a common mistake for untrained managers to include in their analysis all of the following except: A.) Sunk costs B.) Allocated fixed costs C.) Average fixed costs D.) Unit variable costs...
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