Question
35. The payback period is the number of periods it takes for net cash inflows from an investment to equal the initial investment cost. True
35. The payback period is the number of periods it takes for net cash inflows from an investment to equal the initial investment cost.
True or false
36. Capital investment decision could include:
a. decision about installing new automated materials handling systems
b. decision to expand production areas by acquiring another building
c. decision about purchasing another company
d. all of the above.
37. When considering the time value of money, one uses discounting to find the --- value of money to be received
a. average
b. future
c. historical
d. compounded
e. present
38. which of the following methods for evaluating capital investment proposals recognizers the time value of money?
a. payback
b. accounting rate of return
c. net present value
d. all of the above
e. none of the above
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