Which of the options IS NOT a motivation for capital budget?$1$ pointHave the best in class technology Standardization of the assets Substitute old and close to the end of life assets and upgrade of capacity of productionTechnology updating $2.$Question $2$What is the primary concept of the payback method?$1$ pointMatching the rate of return with a benchmark of the market Estimating how long would it take to recover the investment Balancing the interest of the investor with the entrepreneur Net present value at a discount rate$3.$Question $3$If managers have different projects with the same NPV$,$ what could they do to decide which to have green light?$1$ pointThe one that is preferred by the company's top managementAllocating the resources to the alternative that standardize the technology of the company The one that represents a solution to the bottleneck of the company The one that is more aligned to the competences of the company $4.$Question $4$In what situation the bottleneck criterion would be overriden?$1$ pointWhen company's available human resources don't have the skills to develop the project with bottleneck solutionWhen there is an alternative that is a legal or regulatory compliance solution When the other project is a technology update project When the bottleneck project takes more time to be implemented$5.$Question $5$The buying or lease decision is supported by the application of the NPV criteria, which means:$1$ pointThe leasing option may be the best option if both NPVs are the same Managers would apply a sensitivity analysis to compare the projects Managers would project the alternatives in two tables by applying the NPV method, to the same period Managers would have to choose a higher discount rate for the lease option$6.$Question $6$The master budget is the aggregation of the other budgets outcomes. What is the most relevant item in the master budget?$1$ pointCash flow estimationThe financing needsThe income statement. It represents the potential of the company's operations to generate profits The balance sheet $7.$Question $7$Which of the options below DOES NOT have relevant balance sheet components for the master budget analysis?$1$ pointFixed assets and Accounts payableInventoryAccounts receivablesGross margin $8.$Question $8$For the accounts receivables estimation, managers can apply the average collection period method, or alternatively they can:$1$ pointThe receivables would be proportionally the same as what was obtained the year before, normalized by the net income of the budgeted year divided by the last year net income Apply a plain simple percentage on the previous years accounts receivables Layer back the cash$-$in events for each month according to the percentage of receivables expected for that monthDo a rough estimation of the receivables based on the historical data $9.$Question $9$The inventory level for a particular period of the budgeted year can be calculated by using the formula provided. Managers can calculate the Days in Inventory because they have the:$1$ pointThe receivables would be proportionally the same as what was obtained the year before, normalized by the net income of the budgeted year divided by the last year net income processThe value of cost of goods sold and the direct materials inventory Inventory level from the ending inventory of finished goods budget, and the cost of goods sold from the COGS budget Apply a plain simple percentage on the previous years accounts receivables$10.$Question $10$What would be the budgeted ending accounts payable for each quarter, for a company with $ $520,000$ of annual accounts payable $(130,000/$quarter$),$ and $ $3,500,000$ of annual credit purchases?$1$ point$ $77,143\mathrm{.}00$$ $54,456\mathrm{.}00$ $ $84,300\mathrm{.}00$$ $65,378\mathrm{.}0011.$Question $11$What should be the ending finished goods inventory level for a quarter, in money basis, for a company with $48$ days of inventory estimated in its budget, and the budgeted COGS of $ $1,320,000$ in a quarter?$1$ point$ $705,905\mathrm{.}00$$ $696,264\mathrm{.}00$ $ $678,430\mathrm{.}00$$ $623,500\mathrm{.}0012.$Question $12$What would be the cash behavior if an aggressive collection policy were implemented?$1$ pointIt would decrease accounts receivables turnover, which decreases cash It would increase accounts receivables turnover, which reduces cash increase It would increase accounts receivables turnover, which generates cash increase It would decrease accounts receivables turnover, which increases cash $13.$Question $13$What would be the cash behavior if managers decide to increase stock level?$1$ pointAn increase in stock level would increase inventory turnover, generating cash increaseAn increase in stock level would decrease inventory turnover, generating cash increaseAn increase in stock level would decrease inventory turnover, generating cash decrease An increase in stock level would increase inventory turnover, generating cash decrease$14.$Question $14$What would be the cash behavior if managers decide to slow suppliers payment or avoiding early payment discounts?$1$ pointIt would increase accounts payable turnover, generating cash decrease It would decrease accounts payable turnover, generating cash decrease It would increase accounts payable turnover, generating cash increase It would decrease accounts payable turnover, generating cash increase