6 The expected period of time that will elapse between the date of a capital expenditure and a complete recovery in cash or equivalent is called the 7 The method of evaluating capital investment proposals that reduces expected future net cash flows to present values and compares this total present value to the amount of the investment is the 8 The process by which management plans, evaluates, and controls investments in fixed assets is called 9 Periods of time characterized by increasing price levels are known as periods of 10 The budget prepared to facilitate the planning of operations and the financing of property and equipment acquisitions is the 11 The concept that recognizes an amount of cash invested today will earn income and therefore has value over time is called the 12 In using the internal rate of return method, the amount determined by dividing the amount to be invested by the annual net cash flow is called the 13 The concept that recognizes that cash to be received at some date in the future is not the equivalent of the same amount of cash received at an earlier date is called the 14 If the present value of the cash flows using a rate of return of 18 is less than the amount to be invested, the internal rate of return of the proposed capital investment must be (greater or less) than 18 15 In analyzing a capital investment in automated equipment, quantitative considerations may be less important than qualitative considerations (true or false)

Question

6  The expected period of time that will elapse between the date of a capital expenditure and a complete recovery in cash or equivalent is called the                                                                                                             7  The method of evaluating capital investment proposals that reduces expected future net cash flows to present values and compares this total present value to the amount of the investment is the                        8  The process by which management plans, evaluates, and controls investments in fixed assets is called                                                              9  Periods of time characterized by increasing price levels are known as periods of                                                                                                            10  The budget prepared to facilitate the planning of operations and the financing of property and equipment acquisitions is the                           11  The concept that recognizes an amount of cash invested today will earn income and therefore has value over time is called the                            12  In using the internal rate of return method, the amount determined by dividing the amount to be invested by the annual net cash flow is called the                                                                                                                         13  The concept that recognizes that cash to be received at some date in the future is not the equivalent of the same amount of cash received at an earlier date is called the                                                                              14  If the present value of the cash flows using a rate of return of 18  is less than the amount to be invested, the internal rate of return of the proposed capital investment must be (greater or less) than 18           15  In analyzing a capital investment in automated equipment, quantitative considerations may be less important than qualitative considerations (true or false)

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6. The expected period of time that will elapse between the date of a capital expenditure and a complete recovery in cash or equivalent is called the............................................................................................................
7. The method of evaluating capital investment proposals that reduces expected future net cash flows to present values and compares this total present value to the amount of the investment is the.......................
8. The process by which management plans, evaluates, and controls investments in fixed assets is called ............................................................
9. Periods of time characterized by increasing price levels are known as periods of ..........................................................................................................
10. The budget prepared to facilitate the planning of operations and the financing of property and equipment acquisitions is the .........................
11. The concept that recognizes an amount of cash invested today will earn income and therefore has value over time is called the ..........................
12. In using the internal rate of return method, the amount determined by dividing the amount to be invested by the annual net cash flow is called the........................................................................................................................
13. The concept that recognizes that cash to be received at some date in the future is not the equivalent of the same amount of cash received at an earlier date is called the ............................................................................
14. If the present value of the cash flows using a rate of return of 18% is less than the amount to be invested, the internal rate of return of the proposed capital investment must be (greater or less) than 18%? .......
15. In analyzing a capital investment in automated equipment, quantitative considerations may be less important than qualitative considerations (true or false) ....................................................................................................

Question

6. The expected period of time that will elapse between the date of a capital expenditure and a complete recovery in cash or equivalent is

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