Which of the following evaluation methods calculates the time it takes to make up the companys initial investment in a project?

Group of answer choices

Accounting rate of return

Payback method

Average rate of return

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Question 91 pts

A common value for the marginal cost of capital is the average of the costs of the types of capital used to finance the company.

Group of answer choices

True

False

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Question 101 pts

What can companies use to overcome the difficulty of having various projects with varying rates of return requirements?

Group of answer choices

Use a graduated scale for rates of return for different project types

Set a single project hurdle rate slightly above mid-range

Require each manager to advocate for his/her project

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Question 111 pts

A negative additional financing needed (AFN) amount means the company will have funds to use for other purposes.

Group of answer choices

True

False

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Question 121 pts

Which of the following is NOT a way to close a financing gap discovered during a forecasting project?

Group of answer choices

Lower assets

Increase prices

Lower liabilities

Lower costs

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Question 131 pts

Valuation involves estimating profits.

Group of answer choices

True

False

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Question 141 pts

What can the analyst set once forecasts and plans have been completed and integrated?

Group of answer choices

Ratios

Relationships

Benchmarks

Funding opportunities

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Question 151 pts

Why are cash flows resulting from a forecast discounted back to the present value?

Group of answer choices

To determine the investors required rate of return

To determine the enterprise value

To determine the amount of outstanding debt

To determine the cost of capital