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Cung Inc, has some material that originally cost $68, 400. The material has a scrap value of $30, 100 as is, but if reworked at
Cung Inc, has some material that originally cost $68, 400. The material has a scrap value of $30, 100 as is, but if reworked at a cost of $1, 400, it could be sold for $30, 800. What would be the incremental effect on the company's overall profit of reworking and selling the material rather than selling it as is as scrap? A. -$69, 100 B. -$700 C. $29, 400 D. -$ 39,000 The Present Value tables must be used for which of the following capital budgeting methods? A. Option A B. Option B C. Option C D. Option D An investment project for which the net present value is $300 would result in which of the following conclusions? A. The net present value is too small; the project should be rejected. B. The rate of return of the investment project is acceptable, so the project is a good alternative. C. The net present value method is not suitable for evaluating this project; the internal rate of return method should be used. D. The investment project should only be accepted if net present value is zero; a positive net present value indicates an error in the estimates associated with the analysis of this investment. The capital budgeting method that recognizes the time value of money by discounting cash flows over the life of the project, using the company's required rate of return as the discount rate is called the: A. simple rate of return method. B. the net present value method. C. the internal rate of return method. D. the payback method
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