Which of the following correctly describe(s) the limitations when using the unadjusted rate of return. Group...
Which of the following correctly describe(s) the limitations when using the unadjusted rate of return.
Group of answer choices:
-The length of time over which the return will be earned is not considered.
-It allows a sunk cost, depreciation, to enter into the calculation.
-All answers are correct.
-Timing of cash flows is not considered.
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Which of the following correctly describe(s) the limitations when using the unadjusted rate of return. Group...
Which of the following correctly describe(s) the limitations when using the unadjusted rate of return. A.Timing...
Which of the following correctly describe(s) the limitations when using the unadjusted rate of return. A.Timing of cash flows is not considered. b.The length of time over which the return will be earned is not considered. c All answers are correct. d It allows a sunk cost, depreciation, to enter into the calculation.
29. Which of the following is INCORRECT about the annual rate of return method of evaluating...
29. Which of the following is INCORRECT about the annual rate of return method of evaluating Capital project? The calculation is simple . The accounting term used are familiar to management The timing of net cash flows is not considered. d. The time value of money is considered ABC Company wishes to undertake the development a major project in the 7th Ward of New Orleans. It is willing to invest $500,000,000.00 over 10 years time. The Company is considering various...
Which of the following statements does not correctly describe the accounting for bonds that were issued...
Which of the following statements does not correctly describe the accounting for bonds that were issued at their face (maturity) value? Multiple Choice The present value of the bonds' future cash flows equals the bonds' maturity value. The interest expense over the life of the bonds will equal the total cash interest payments. The book value of the bond liability decreases when interest payments are made on the due dates. The market rate of interest equals the coupon rate.
Which of the following statements is most correct? Group of answer choices If a project with...
Which of the following statements is most correct? Group of answer choices If a project with normal cash flows has an IRR, which exceeds the cost of capital (required rate of return), then the project must have a positive NPV. If the IRR of Project A exceeds the IRR of Project B, then Project A must also have a higher NPV. Assuming a project has normal cash flows, the NPV will be positive if the IRR is less than the...
Which of the following statements is CORRECT? a. When evaluating corporate projects it is important to...
Which of the following statements is CORRECT? a. When evaluating corporate projects it is important to exclude all opportunity costs. b. Interest expense should be included in project cash flows. c. In a replacement analysis, we should only focus on the cash flows related to the new machinery. d. The rate of depreciation will often affect operating cash flows, even though depreciation is not a cash expense. e. Under the scenario of a cannibalization effect where the new business eats...
Question 13 (1 point) Which one of the following can be completely ignored when analyzing a...
Question 13 (1 point) Which one of the following can be completely ignored when analyzing a project? OA) discount rate. OB) cost of capital. OC) opportunity costs. D) sunk costs. E) side effects. Question 14 (1 point) The length of time required for an investment to generate cash flows sufficient to recover its initial cost is the: CIDA) Internal rate of return. B) Time value of money. Payback period. D Nel present value. E l bility index
Which of the following statements does not correctly describe an adjustment to net income when determining...
Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method? An increase in wages payable will be added to net income. A gain on the sale of a depreciable asset will be subtracted from net income. An increase in prepaid expenses will be subtracted from net income. An increase in income taxes payable will be subtracted from net income.
Question 27 1 pts Which of the following statements regarding depreciation is incorrect? When filing for...
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...
1. Which of the following capital investment evaluation methods use present values? A. Net present value...
1. Which of the following capital investment evaluation methods use present values? A. Net present value method B.Average rate of return method C. Both "Net present value method" and "Average rate of return method" D. Neither "Net present value method" nor "Average rate of return method" 2. A common characteristic found in capital investment evaluation methods that use present values is ________. no interest rate an interest rate their ease of use None of these choices are correct. 3. Assume that...
QUESTION 2 Depreciation must be considered when evaluating the incremental operating cash flows associated with a...
QUESTION 2 Depreciation must be considered when evaluating the incremental operating cash flows associated with a capital budgeting project because: A. it represents a tax-deductible cash expense. B. the firm has a cash outflow equal to the depreciation expense each year. C. depreciation is a cash flow that doesn't change. D. depreciation has an impact on the taxes paid by the firm, which is a cash flow. E. depreciation is a sunk cost. QUESTION 3 Diversifiable risk includes _____. A....
29. Which of the following is INCORRECT about the annual rate of return method of evaluating Capital project? The calculation is simple . The accounting term used are familiar to management The timing of net cash flows is not considered. d. The time value of money is considered ABC Company wishes to undertake the development a major project in the 7th Ward of New Orleans. It is willing to invest $500,000,000.00 over 10 years time. The Company is considering various...
Which of the following statements does not correctly describe the accounting for bonds that were issued at their face (maturity) value? Multiple Choice The present value of the bonds' future cash flows equals the bonds' maturity value. The interest expense over the life of the bonds will equal the total cash interest payments. The book value of the bond liability decreases when interest payments are made on the due dates. The market rate of interest equals the coupon rate.
Question 13 (1 point) Which one of the following can be completely ignored when analyzing a project? OA) discount rate. OB) cost of capital. OC) opportunity costs. D) sunk costs. E) side effects. Question 14 (1 point) The length of time required for an investment to generate cash flows sufficient to recover its initial cost is the: CIDA) Internal rate of return. B) Time value of money. Payback period. D Nel present value. E l bility index
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...
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