You are watching: Which of the following is a present value method of analyzing capital investment proposals?
Decisions to install brand-new tools, replace old devices, and purchase or construct a new building are examples of
a.Investments have to earn a reasonable price of returnb.Employees are able to recognize and also propose capital equipment for their departments or departmentsc.Proposals have to complement lengthy term purposes.d.All of the above.
By converting dollars to be received in the future into current dollars, the existing worth techniques take right into consideration that money:
Which of the following are 2 techniques of analyzing resources investment proposals that both overlook current value?
The approach of analyzing capital investment proposals that divides the estimated average yearly revenue by the average investment is:
The primary advantages of the average price of rerevolve strategy are its ease of computation and the truth that:
Which approach for evaluating resources investment proposals reduces the supposed future net cash flows originating from the proposals to their present values and computes a net existing value?
Which of the following deserve to be used to place funding investment proposals involving different quantities of investment on a comparable basis for objectives of net current value analysis?
The proposal is desirable and also the price of return intended from the proposal exceeds the minimum rate provided for the evaluation.
An analysis of a proposal by the net existing value method indicated that the existing value of future cash inflows gone beyond the amount to be invested. Which of the complying with statements finest defines the outcomes of this analysis?
Which technique of evaluating capital investment proposals provides the concept of current worth to compute a rate of return?
Which of the complying with is a technique of analyzing capital investment proposals that ignores existing value?
The approaches of evaluating resources investment proposals deserve to be separated right into 2 basic groups--existing value approaches and:
When numerous alternate investment proposals of the exact same amount are being considered, the one with the biggest net current worth is the the majority of desirable. If the alternative proposals involve various quantities of investment, it is valuable to prepare a relative ranking of the proposals by making use of a(n):
Which method of evaluating resources investment proposals supplies current worth principles to compute the rate of rerevolve from the net cash flows expected from capital investment proposals?
The cash payearlier strategy is commonly provided in evaluating investments. The complying with are factors why this method is used except:
All of the adhering to qualitative considerations may influence upon capital investments evaluation except:
All of the adhering to qualitative considerations may impact upon capital investments analysis except:
Which of the following provisions of the Internal Revenue Code have the right to be offered to reduce the amount of the revenue tax price developing from capital investment projects?
Adsimply the life of Proposal J to a time period that is equal to that of Proposal F by estimating a residual value at the end of year 6.
Assume in analyzing alternative proposals that Proposal F has a useful life of six years and Proposal J has a beneficial life of nine years. What is one widely used approach that renders the proposals comparable?
Which of the following would not be considered a great managerial tool in making a decision for determining a funding investment?
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