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please answer all the qustions asap Burtom Lach following question is point. 1. Other things held on, which of the following An increase in the

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Burtom Lach following question is point. 1. Other things held on, which of the following An increase in the discountered with the 1. The project would decrease sales of expended c. An increase in required na operating working at d. Making the initial lavestment in the form you are great e. A shift from straight-line to MACRS deprecati 2. Which of the following is NOT a relevant sto od NOT budgeting project? a Opportunity costs b. Changes in net operating working capital e. Shipping and installation costs for machinery capired d. None one above 3. Which of the following statements is CORRECT? . One defect of the IRR method is that does not take account of the time b. One defect of the IRR method is that in valuta dollar received today the received until sometime in the future c. One defect of the IRR method is that it wames that the ash flows to be received reinvested at the IRR itself, and that assumption is often not valid d. One defect of the IRR method is that it does not take account of the cost of capital c. One defect of the IRR method is that is does nezake account of cash flows over predst lide 4. Which of the following statements is CORRECT? The regular payback does not consider cash flows beyond the payback yeur, but the discounted payback 6. The regular payback is useful as an indicator of a project's liquidity because i gives managers an idea of the long it will take to recover the funds invested in a project c. The regular payback method recognizes all cash flows over a project's life d. The discounted puyback method recognizes all cash flows over a project's life, and it also adjust these cash flows to account for the time value of money. e. The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today 5. A company is considering a new project. The CFO plans to calculate the project's NPV by estimating the relevant cash flows for each year of the project's life (1.o., the initial investment cost, the annual operating cash flows, and the terminal cash flows), then discounting those cash flows at the company's overall WACC. Which one of the following factors should the CFO be sure to INCLUDE in the cash flows when estimating the relevant cash flows? a. All sunk costs that have been incurred not relating to the project. b. Effects of the project on other divisions of the firm, but only if those effects lower the project's own direct cash flows, c. Sunk costs that have been incurred relating to the project, but only if those costs were incurred prior to the current year. d. The additional investment in niet operating working capital required to operate the project, even if that investment will be recovered at the end of the project's life. e. All interest expenses on debt used to help finance the project Burtom Lach following question is point. 1. Other things held on, which of the following An increase in the discountered with the 1. The project would decrease sales of expended c. An increase in required na operating working at d. Making the initial lavestment in the form you are great e. A shift from straight-line to MACRS deprecati 2. Which of the following is NOT a relevant sto od NOT budgeting project? a Opportunity costs b. Changes in net operating working capital e. Shipping and installation costs for machinery capired d. None one above 3. Which of the following statements is CORRECT? . One defect of the IRR method is that does not take account of the time b. One defect of the IRR method is that in valuta dollar received today the received until sometime in the future c. One defect of the IRR method is that it wames that the ash flows to be received reinvested at the IRR itself, and that assumption is often not valid d. One defect of the IRR method is that it does not take account of the cost of capital c. One defect of the IRR method is that is does nezake account of cash flows over predst lide 4. Which of the following statements is CORRECT? The regular payback does not consider cash flows beyond the payback yeur, but the discounted payback 6. The regular payback is useful as an indicator of a project's liquidity because i gives managers an idea of the long it will take to recover the funds invested in a project c. The regular payback method recognizes all cash flows over a project's life d. The discounted puyback method recognizes all cash flows over a project's life, and it also adjust these cash flows to account for the time value of money. e. The regular payback method was, years ago, widely used, but virtually no companies even calculate the payback today 5. A company is considering a new project. The CFO plans to calculate the project's NPV by estimating the relevant cash flows for each year of the project's life (1.o., the initial investment cost, the annual operating cash flows, and the terminal cash flows), then discounting those cash flows at the company's overall WACC. Which one of the following factors should the CFO be sure to INCLUDE in the cash flows when estimating the relevant cash flows? a. All sunk costs that have been incurred not relating to the project. b. Effects of the project on other divisions of the firm, but only if those effects lower the project's own direct cash flows, c. Sunk costs that have been incurred relating to the project, but only if those costs were incurred prior to the current year. d. The additional investment in niet operating working capital required to operate the project, even if that investment will be recovered at the end of the project's life. e. All interest expenses on debt used to help finance the project

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