Homework Answers
The following is true of EAC:-
a) Calculating the EAC is useful when you are comparing projects with different life spans
The equivalent annual cost is the total present value divided by the sum of present value factors. Thus this gives a comparable measure to compare both the projects with unequal life's
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Question 18 1 pts Which of the following statements is true regarding the equivalent annual cost,...
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Question 10 (Mandatory) (1 point) Which of the following statements is true? If the new project is riskier than the firm's existing projects, then it should be charged a higher cost of capital. O If the new project is riskier than the firm's existing projects, then it should be charged a lower cost of capital. If the new project is riskier than the firm's existing projects, then it should be charged the firm's cost of capital. The new project's risk...
Question 3 (1 point) Which of the following statements regarding investment in working capital is incorrect?...
Question 3 (1 point) Which of the following statements regarding investment in working capital is incorrect? working capital is recovered at the end of the project. investment in working capital, unlike investment in plant and equipment, represents a positive cash flow. the cash flow is measured by the change in working capital, not the level of working capital. the working capital may change during the life of the project. Question 4 (1 point) A company is considering a 5-year project...
The equivalent annual cost (EAC) method for evaluating projects applies when which of the following project...
The equivalent annual cost (EAC) method for evaluating projects applies when which of the following project characteristics exist? 1. The projects are mutually exclusive. II. The projects have different economic lives. III. The projects will be replaced more on less indefinitely Select one: a. ll and ill only b.land Ul.only OC. I, II, and I O d. lll only e. I and Il only
Question 23 1 pts Which of the following statements regarding digital systems is true? except for...
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Which of the following statements is correct? C The payback period is the length of time...
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Which of the following statements is CORRECT? The internal rate of return method (IRR) is generally...
Which of the following statements is CORRECT? The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The net present value method (NPV) is generally regarded by academics...
Question 18. In accordance with IAS 38 Intangible Assets, which of the following statements regarding the...
Question 18. In accordance with IAS 38 Intangible Assets, which of the following statements regarding the accounting treatment of an intangible asset is correct? An intangible asset with a finite useful life is tested for impairment annually An intangible asset with an indefinite useful life is tested for impairment when indications exist An intangible asset with a finite useful life must be amortised using the straight line method The assumption that an intangible asset has an indefinite useful life must...
Question 27 1 pts Which of the following statements regarding depreciation is incorrect? When filing for...
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Question 33 1 pts Which of the following is TRUE regarding short-term dynamic therapy? O It...
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QUESTION 18 Diversification refers to the _____. A. reduction of the stand-alone risk of an individual...
QUESTION 18 Diversification refers to the _____. A. reduction of the stand-alone risk of an individual investment, measured by the standard deviation of its returns, by combining it with other investments in a portfolio B. reduction of the systematic risk of an individual investment, measured by the standard deviation of its returns, by combining it with other investments in a portfolio C. reduction of the systematic risk of an individual investment, measured by its beta coefficient, by combining it with...
Question 10 (Mandatory) (1 point) Which of the following statements is true? If the new project is riskier than the firm's existing projects, then it should be charged a higher cost of capital. O If the new project is riskier than the firm's existing projects, then it should be charged a lower cost of capital. If the new project is riskier than the firm's existing projects, then it should be charged the firm's cost of capital. The new project's risk...
Question 3 (1 point) Which of the following statements regarding investment in working capital is incorrect? working capital is recovered at the end of the project. investment in working capital, unlike investment in plant and equipment, represents a positive cash flow. the cash flow is measured by the change in working capital, not the level of working capital. the working capital may change during the life of the project. Question 4 (1 point) A company is considering a 5-year project...
The equivalent annual cost (EAC) method for evaluating projects applies when which of the following project characteristics exist? 1. The projects are mutually exclusive. II. The projects have different economic lives. III. The projects will be replaced more on less indefinitely Select one: a. ll and ill only b.land Ul.only OC. I, II, and I O d. lll only e. I and Il only
Question 23 1 pts Which of the following statements regarding digital systems is true? except for memory circuits, a single decoupling capacitor at the point where the power enters each board is sufficient decoupling capacitors are needed at every board, subsystem, and IC O a single large decoupling capacitor is usually better than multiple smaller-value capacitors all of the above Question 24 1 pts Which of the following statements represents the best approach for reducing common-mode emissions? O reduce size...
Which of the following statements is correct? C The payback period is the length of time it takes for an investment to recoup its A) own initial cost out of the cash receipts it generates. O B Projects with shorter payback periods are always more profitable than projects with longer payback periods. C The payback method of making capital budgeting decisions gives ful c) consideration to the time value of money. O If new equipment is replacing old equipment, any...
Which of the following statements is CORRECT? The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The net present value method (NPV) is generally regarded by academics...
Question 27 1 pts Which of the following statements regarding depreciation is incorrect? When filing for corporate taxes, companies prefer to use the depreciation method that allows them to deduct equal amount of depreciation each period. Under the accelerated method, the IRS allows an asset to be fully depreciated to a zero book value. O When selling a partially depreciated asset, a firm is only responsible for taxes on the sale price minus the un-depreciated book value O The straight...
Question 33 1 pts Which of the following is TRUE regarding short-term dynamic therapy? O It focuses more on the present and less on restructuring the entire personality than traditional psychodynamic therapy. It is a newer form of cognitive-behavioral therapy in use today. O It has proven very useful in the treatment of depression. O It is the older, traditional way of practicing psychanalysis as Freud did it in his day.
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