39

The ________________ is the discount rate that equates the present value of a project's cash inflows with the present value of the project's outflows.

Cost of capital

Internal rate of return

Present value index

Time adjusted accounting rate of return

38

Which of the following factors is not an advantage of preparing operating budgets?

Improved communications

Improved basis of performance evaluation

Increased employee loyalty

Improved planning

37

Cameo Company manufactures boxes. To manufacture a box, it takes 44 units of wood and 2 units of plastic. Scheduled production of boxes for the next two months is 2,100 and 2,500 boxes, respectively. Beginning inventory is 16,000 units of wood and 120 units of plastic. The ending inventory of wood is planned to decrease 4,000 units each for the next two months, and the plastic inventory is expected to increase 20 units each of the next two months. How many units of wood does Tedesco expect to use in production during the second month?

	96,000 units
	180,000 units
	110,000 units
	86,000 units