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11) Sunk costs are an irrelevant consideration in decision making. (9.37pts) True False 12) A dollar received today is worth less than a dollar received
11) Sunk costs are an irrelevant consideration in decision making. (9.37pts) True False 12) A dollar received today is worth less than a dollar received in the future. (9.38pts) True False 13) The present value of an investment is the amount an investor is willing to pay to securea specified cash flow on a future date at a given rate of return. True False 14) In considering a special order situation that will enable a company to make use of presenth capacity, which of the following costs would be irrelevant? Materials Depreciation Direct labor Variable overhead 15) Which of the following considerations is not a major concern in calculating the net present of an investment? The timing of cash flows The amount of cash flows. Net income generated by the investment The cost of capital 16) In general, an investment should be undertaken when: (9.38pts) the net present value is less than zero the net present value is greater than zero the net present value is greater than the internal rate of return. Both Band C
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