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The ultimate success of company aperations depend signifinantiy opon sound capital budgeting decioions. True or Fatse with the firmis abaty to meet its matiung debis.

The ultimate success of company aperations depend signifinantiy opon sound capital budgeting decioions. True or Fatse with the firmis abaty to meet its matiung debis. Thue of falial
The present vaiue of an annuty falis as the mumber of compounding (discounting) periods per year increases. Trae or False. furms cont of capital. True or Faise percent compounded antually?
56 Unsvstematic risk is alinost non-exit iant when capital markets are etficient and investors are well diversifed Thing or False paying companies. True or Faise
A perpetuity is a special form of an a funity whose term begins on a definte date and ends on a definite date True or False
59 A project with an invesiment of $10,000 has net cash flows of $000. $3,000, and $1,000for each of the nextthreeyears What isthe paybach period ofthe project? reciprocal. True or False
General office expenses or sunk cosis (couts from past decisions) are ing irrelevant costs in the capital budgeting analysis because thoy are not changed by the acceptance of the project True or False
Today's $1 is the same as nextyear's $1 thanks to the time value of money. True or False
What is important in capilal budgeting is the concept of cash flows rather than the concept of earnings after taxes True or False
The amortzation method refers to the fetirement of a debt by making a set of equal periodic payments. These periodic payments include both interest and principal. True or False
65 The present value of a bond is equal to the preseat of periodic interest payments and the present value of the maturty value True of False
6 The payback method is poor because it ignores the the value of money and ruturns beyond the payback perrod, True or False
57 If the primary goal of the firm is to maximize its market value, ma kel valut weights are consistent with thefirm'sobjective True or Fakng Q8 The murginal cost ol caphal is delined as?
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