Which of the following evaluation methods calculates the time it takes to make up the company’s 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 investor’s required rate of return
To determine the enterprise value
To determine the amount of outstanding debt
To determine the cost of capital
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| Which of the following evaluation methods calculates the time it takes to make up the company’s initial investment in a project? |
| Payback method |
|
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. |
| True. |
| What can companies use to overcome the difficulty of having various projects with varying rates of return requirements? |
| Set a single project hurdle rate slightly above mid-range |
| A negative additional financing needed (AFN) amount means the company will have funds to use for other purposes. |
| True. |
| Which of the following is NOT a way to close a financing gap discovered during a forecasting project? |
| Increase prices |
| Valuation involves estimating profits. |
| False. |
| What can the analyst set once forecasts and plans have been completed and integrated? |
| Benchmarks |
| Why are cash flows resulting from a forecast discounted back to the present value? |
| To determine the enterprise value |
Which of the following evaluation methods calculates the time it takes to make up the company’s...
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