Long – term investment decision require consideration of
A. Time value of money
B. Cost behavior
C. Forecasted cash flow
D. Relevant cost
E. All of the other answers should be considered.
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correct answer is option - E) All ot other answers should be considered.
Long term investment decision are based on NPV analysis which include time value of money, cost behavior, cash flow forecast and relevant cost. Therefore, correct answer is option E.
Long – term investment decision require consideration of A. Time value of money B. Cost behavior C. Forecasted cash f...
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18) The choice to hold money in the form of cash A) Has no opportunity cost. B) Results in forgone interest. C) Results in increased interest income. D) Results in greater outstanding debt. opportunity cost of holding money in the form of cash to 19) Which of the following causes the opportunity cost of holding money decrease? A) Lower interest rates. B) Higher short-term yields. C) Higher reserve requirement. D)...
Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $128,913. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $84,400, and annual cash outflows would increase by $40,100. The company's required rate of return is 12%. Click here to view PV table. Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%.) Internal rate of return...
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