11) Capital budgeting is best described as the ________.

A) process that determines which countries will receive capital investment funds

B) procedure for determining the proper mix of debt and equity for a country

C) proper management of a country's current assets and liabilities

D) simplification of corporate tax procedures

12) One way to account for the challenge of the variability of future cash flows is to ________.

A) adjust the hurdle rate for the project

B) use the most likely cash flow estimate

C) ignore different rates of inflation to prevent confusion

D) leave out a consideration of the terminal value of an investment

13) The net present value of a project is calculated as

A) the future value of all cash inflows minus the present value of all outflows.

B) the sum of all cash inflows minus the sum of all cash outflows.

C) the present value of all cash inflows minus the present value of all cash outflows.

D) None of the above