Q7- Which of the following methods is potentially useful for helping an organization align its capital expenditures with its strategy?

Multiple Choice

• Linear optimization (that is, linear programming models).

• Six-Sigma techniques.

• Multiproduct cost-volume-profit (CVP) analysis.

• Multiple regression and correlation analysis.

• The analytic hierarchy process (AHP).

Q8- Which of the following is not a characteristic of the payback method for making capital budgeting decisions?

Multiple Choice

• It can be considered a rough measure of risk.

• It requires estimates of after-tax cash inflows and after-tax cash outflows.

• It considers returns over the entire life of the project.

• It focuses primarily on liquidity, rather than profitability, of an investment project.

• It is easy to calculate and comprehend.

Q12- XYZ Corporation is contemplating the replacement of an existing asset used in the operation of its business. The original cost of this asset was $30,000; since date of acquisition, the company has taken a total of $22,000 of depreciation expense on this asset. The current disposal (market) value of this asset is estimated as $26,000. XYZ is subject to a combined income tax rate, t, of 36%. What is the projected after-tax cash flow associated with the sale of the existing asset, rounded to nearest hundred dollars?

Multiple Choice

• $16,320.

• $12,920.

• $14,920.

• $19,520.

• $22,920.