Kristi wants to start training her most junior assistant Amy in the art of

Kristi wants to start training her most junior

This preview shows page 72 - 75 out of 127 pages.

51. Kristi wants to start training her most junior assistant, Amy, in the art of project analysis. Amy has just started college and has no experience or background in business finance. To get her started, Kristi is going to assign the responsibility for all projects that have initial costs less than $1,000 to Amy to analyze. Which method is Kristi most apt to ask Amy to use in making her initial decisions? A. discounted paybackB. profitability indexC. internal rate of returnD.paybackE. average accounting returnRefer to section 9.7AACSB: N/ABloom's: ApplicationDifficulty: BasicLearning Objective: 9-2Section: 9.7Topic: Capital budgeting practice52. Which two methods of project analysis were the most widely used by CEO's as of 1999? Refer to section 9.7AACSB: N/ABloom's: KnowledgeDifficulty: BasicLearning Objective: 9-1Section: 9.7Topic: Capital budgeting practice9-72
Background image
Chapter 09 - Net Present Value and Other Investment Criteria53. Which two methods of project analysis are the most biased towards short-term projects? Refer to section 9.7AACSB: N/ABloom's: ComprehensionDifficulty: BasicLearning Objective: 9-2Section: 9.7Topic: Capital budgeting methods54. Western Beef Exporters is considering a project that has an NPV of $32,600, an IRR of 15.1 percent, and a payback period of 3.2 years. The required return is 14.5 percent and the required payback period is 3.0 years. Which one of the following statements correctly applies to this project? Refer to section 9.7AACSB: N/ABloom's: ComprehensionDifficulty: BasicLearning Objective: 9-2Section: 9.7Topic: Capital budgeting practice9-73
Background image
Chapter 09 - Net Present Value and Other Investment Criteria
Background image
Image of page 75

You've reached the end of your free preview.

Want to read all 127 pages?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture