Ans - (B) will include all investment costs and operating expenses associated with the investment in his or her recommendation.
Generally whenever new capital investment is made capital budgeting decision is taken to find out profit from investment.While calculating profit, investment cost and other expenses are taken into consideration.
the person recommending a nee capital investment; a) will be conservative b)will include all investment costs...
Home country costs of Foreign Direct Investment include: Select one: a. The balance of payments suffers from the initial capital outflow. b. The current account of the balance of payments suffers if the purpose of the foreign investment is to serve the home market at a low-cost production location. c. The current account of the balance of payments suffers if the FDI is a substitute for direct exports. d. All of the above
please answer all parts! Initial investment (CF) Outcome Pessimistic Most likely Optimistic Project A Project B $12,100 $12,100 Annual cash inflows (CF) T $800 $1,590 1,700 1,700 2.480 1,740 a. Determine the range of annual cash inflows for each of the two projects. b. Assume that the firm's cost of capital is 9.5% and that both projects have 15-year lives. Construct a table showing the NPVs for each project for each of the possible outcomes. Include the range of NPVs...
Period costs do NOT include A. order-getting costs B. order-filling costs C. order-making costs D. all of the above are period costs
Fixed costs include: a. variable labor expenses. b. output-related energy costs. c. output-related raw material costs. d. interest cost for a predetermined amount of borrowed capital.
2. Product costs include: a. all direct and indirect manufacturing costs b. only direct manufacturing costs c. all operating expenses of the accounting period d. only conversion costs 3. The distinction between product costs and period exper a. whether the costs are direct or indirect b. whether the costs are variable or fixed c. whether the costs are part of inventory or cost of go d. whether the costs are manufacturing or nonmanufa 4. During a recent month, the Silver...
When interest rates rise, how does this affect the present value of human capital investment? A. It has no effect on present value and human capital investment. B. It raises the present value. C. It makes human capital investment more worthwhile. D. It makes human capital investment less worthwhile. When choosing to pursue college full-time, the costs that must be taken into account in a benefit-cost analysis include: A. tuition and local transportation costs. B. tuition and room and board....
1. Cash Flows in capital budgeting are most likely to include: A. interest cost on debt issued to finance the capital project B. flotation costs associated with equity issued to finance the capital project C. previous expenditures associated with a market study to determine the feasibility of the project 2. May is studying the relationship between NPV and IRR. If an investment is profitable and follows a conventional cash flow pattern, what will happen to the IRR if all the...
Product cost for financial statement purposes may include: a-all costs allowed by government agencies b-all costs included for pricing and product-mix decisions c-production costs d-all costs except marketing costs
24. Factory overhead costs normally include all of the following except: A. Indirect labor costs. B. Indirect material costs. C. Selling costs. D. Factory machinery oil. E. Factory rent. 25. An opportunity cost is: A. An uncontrollable cost. B. A cost of potential benefit lost. C. A change in the cost of a component. D. A direct cost. E. A sunk cost. 26. Which of the following costs is not included in factory overhead? A. Payroll taxes on the wages...
1- Inventory costs include all of these: purchase costs, holding or carrying costs, and ordering costs. T. True F. False 2- The Economic Order Quantity (EOQ) model tells us........ A. how much to order B. which are higher - holding or ordering costs C. how to use price discounts D. when to order 3- When tracking or counting inventory items, we should focus on which items most? A. A-items B. B-items C. C-items D. D-tems 4- The Economic Order Quantity...