23. Which of the following expenses would not be included in the cash disbursements section of the cash budget?

Select one:

a. The payment of dividends to shareholders

b. The payment of corporate taxes

c. The payment of office supplies

d. The payment of the depreciation expenses

26.

Home mortgage loans are commonly paid off by making equal monthly payments consisting of both interest and principal. This is an example of an amortized loan.

Select one:

a. false

b. true

30. Project A has an NPV of $20,000 and a PI of 1.2. Project B has an NPV of $10,000 and a PI of 1.3. Both projects have equal lives. Which project should be preferred if we are NOT concerned with capital rationing (that is, we are NOT concerned with being short of funds)?

Select one:

a. We should prefer Project B since it has a higher PI.

b. We should compute the EAA before we make any decision.

c. We should prefer Project A since it has a higher NPV.

d. We should prefer Project B if it has a higher IRR.