Fin 304 Ch.12 & 16

Fin 304 Ch.12 & 16 - 1.Because of improvements in...

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1.  Because of improvements in forecasting techniques, estimating the cash flows associated with a project has become the easiest step in the capital budgeting process.  (Points : 6)         True         False  2.  As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories generally increase, and purchases of inventories result in more accounts payable. Thus, spontaneously generated funds arise from transactions brought on by sales increases.  (Points : 6)         True         False  3.  A rapid build-up of inventories normally requires additional financing, unless the increase is matched by an equally large decrease in some other asset.  (Points : 6)         True         False  4.  The first, and most critical, step in constructing a set of forecasted financial statements is the sales forecast.  (Points : 6)         True         False  5.  Although it is extremely difficult to make accurate forecasts of the
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Fin 304 Ch.12 & 16 - 1.Because of improvements in...

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