Question
The return on investment is computed as: Operating income divided by sales Operating income divided by average operating assets Sales divided by average operating assets
The return on investment is computed as:
Operating income divided by sales | ||
Operating income divided by average operating assets | ||
Sales divided by average operating assets | ||
Operating asset turnover divided by the operating income margin |
2.5 points
QUESTION 39
A precondition for effective capital budgeting requires having:
A clearly defined mission | ||
A well-defined business strategy | ||
Long-range goals | ||
All of the above |
2.5 points
QUESTION 40
Which of the following amounts would be classified as part of the disinvestment phase for a project?
Depreciation | ||
Collections of accounts receivable from sales | ||
Expenditure to return plant site to its pre-project condition | ||
Retiring bonds issues to finance the project |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started