Intelligence
Intelligence
CCMH/535
University of Phoenix, Las Vegas
Collective Definitions
What does intelligence mean?
Intelligence
If you look intelligence up in the dictionary you would find different definitions based upon a
quote from either a psycho

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. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

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Capital budgeting decisions usually involve analysis of:
A. Cash outflows only.
B. Short-term investments only.
C. Long-term investments only.
D. Investments with certain outcomes only.
E. Operating revenues.
. Capital budgeting decisions are generally

CCMH/535
Answer the following multiple-choice questions based on your readings for this week.
1.
Suzie is a nurse who truly enjoys helping others. She is often described by her coworkers as engaging and
caring both with patients and friends. Which of the

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. A company wishes to buy new equipment for $9,000. The equipment is expected to generate an
additional $2,800 in cash inflows for six years. All cash flows occur at year-end. A bank will make a
$9,000 loan to the company at a 10% interest r

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A company is considering purchasing a machine for $21,000. The machine will generate an after-tax
net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the payback
period for the new machine?
A. 4 years.
B. 6 ye

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A company is considering purchasing a machine for $21,000. The machine will generate an after-tax
net income of $2,000 per year. Annual depreciation expense would be $1,500. What is the
approximate Accounting Rate of Return?
A. 19%.
B. 33%.

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If the company is using the payback period method and it requires a payback of three years or less,
which project should be selected?
A. Project Y.
B. Project X.
C. Both X and Y are acceptable projects.
D. Neither X nor Y is an acceptable pr

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. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

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. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

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A company wishes to buy new equipment for $35,000. The equipment is expected to generate an
additional $9,600 in cash inflows for seven years. All cash flows occur at year-end. A bank will make a
$35,000 loan to the company at a 10% interest

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. The time expected to pass before the net cash flows from an investment would return its initial cost
is called the:
A. Amortization period.
B. Payback period.
C. Interest period.
D. Budgeting period.
E. Discounted cash flow period.
A compa

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A company wishes to buy new equipment for $35,000. The equipment is expected to generate an
additional $9,600 in cash inflows for seven years. All cash flows occur at year-end. A bank will make a
$35,000 loan to the company at a 10% interest

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. The break-even time (BET) method is a variation of the:
A. Payback method.
B. Internal rate of return method.
C. Accounting rate of return method.
D. Net present value method.
E. Present value method.
. If a manager was concerned with the

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A given project requires a $25,000 investment and is expected to generate end-of-period annual cash
inflows as follows:
Assuming a discount rate of 10%, what is the net present value of this investment? Selected present
value factors for a s

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A company wishes to buy new equipment for $85,000. The equipment is expected to generate an
additional $35,000 in cash inflows for four years. All cash flows occur at year-end. A bank will make
an $85,000 loan to the company at a 10% interes

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A given project requires a $28,500 investment and is expected to generate end-of-period annual cash
inflows of $12,000 for each of three years. Assuming a discount rate of 10%, what is the net present
value of this investment? Selected prese

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. A given project requires a $30,000 investment and is expected to generate end-of-period annual
cash inflows as follows:
Assuming a discount rate of 10%, what is the net present value of this investment? Selected present
value factors for a sin

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The internal rate of return method is not subject to the limitations of the net present value method
when comparing projects with different amounts invested because:
A. The internal rate of return is expressed as a percent rather than the absolu

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. A company is considering the purchase of a new piece of equipment for $90,000. Predicted annual
cash inflows from this investment are $36,000 (year 1), $30,000 (year 2), $18,000 (year 3), $12,000
(year 4) and $6,000 (year 5). The payback p

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. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

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. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

Assessing individuals with mental disorders and/or disabilities requires specific knowledge and skills.
Select a population of interest to you (for example, individuals with depression, anxiety, eating
disorders, substance abuse disorders, Alzheimers diso

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. If a manager was concerned with the time value of money, from which two capital budgeting
methods should the manager choose?
A. IRR or Payback.
B. BET or IRR.
C. BET or Payback.
D. NPV or ARR.
E. NPV or Payback.
A company wishes to buy new

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. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

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.
. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

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.
.
. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

.
.
.
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.
.
.
. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

.
.
.
.
.
.
.
. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.

.
.
.
.
.
.
.
. A disadvantage of using the payback period to compare investment alternatives is that:
B. It includes the time value of money.
C. It cannot be used when cash flows are not uniform.
D. It cannot be used if a company records depreciation.
E.