Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

As soon as possible please, thumps up for fast and correct answer :) . Unsophisticated capital budgeting techniques do not A) examine the size of

As soon as possible please, thumps up for fast and correct answer :) .
image text in transcribed
Unsophisticated capital budgeting techniques do not A) examine the size of the initial outlay B) use net profits as a measure of return. ) explicitly consider the time value of money D) take into account an unconventional cash flow pattern 8) Al-Khabir corporation is considering expanding operations to meet growing demand. With the capital expansion, the current accounts are expected to change Management of Al-Khabir expects cash to increase by $20,000, accounts receivable by $40,000, and inventories by $60,000. At the same time accounts payable will increase by $50,000, accruals by $10,000, and long-term debt by $100,000. The change in net working capital is A) an increase of $120,000 B) a decrease of $60,000 C) a decrease of $120,000 D) an increase of $60,000 9) A conventional cash flow pattern associated with capital investment projects consists of an initial A) outflow followed by a broken cash series. B) inflow followed by a broken series. C) outflow followed by a series of inflows. D) inflow followed by a series of outflows. 10) Cash outlays that had been previously made and have no effect on the cash flows relevant to a current decision are called A) incremental historical costs. B) incremental past expenses. C) opportunity costs foregone. D) sunk costs. 11) The annual rate of return is variously referred to as the A) discount rate. B) opportunity cost C) cost of capital. D) all of the above. 12) $100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are deposited at 12%, their combined future value at the end of year 3 is A) $1,536 B) $ 672 C) $ 727 D) $1,245

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Passive Income The Passive Income Millionaire

Authors: Alexus Arellano

1st Edition

9814950882, 978-9814950886

More Books

Students also viewed these Finance questions

Question

What process do you have in place for development planning?

Answered: 1 week ago

Question

Explain the nature of human resource management.

Answered: 1 week ago

Question

Write a note on Quality circles.

Answered: 1 week ago

Question

Describe how to measure the quality of work life.

Answered: 1 week ago