You are watching: A method of evaluating capital investment proposals that ignore present value includes...
Decisions to install new equipment, replace old equipment, and purchase or construct a new building are examples of
a.Investments have to earn a reasonable price of returnb.Employees are able to determine and also propose capital equipment because that their divisions or departmentsc.Proposals should complement long ax goals.d.All the the above.
By convert dollars to be received later on into existing dollars, the present value methods take into factor to consider that money:
Which the the following are two approaches of evaluating capital investment proposals that both ignore existing value?
The technique of assessing capital investment proposals that divides the approximated average annual income through the average investment is:
The primary benefits of the median rate of return an approach are its ease of computation and also the reality that:
Which method for examining capital invest proposals reduce the supposed future net cash operation originating indigenous the proposals to their present values and also computes a net existing value?
Which of the following can be offered to place capital investment proposals entailing different amounts of invest on a comparable basis for purposes of net existing value analysis?
The proposal is desirable and the price of return intended from the proposal above the minimum rate offered for the analysis.
An analysis of a proposal by the net existing value method indicated that the current value that future cash inflows exceeded the lot to it is in invested. Which of the complying with statements finest describes the outcomes of this analysis?
Which method of analyzing capital invest proposals provides the ide of existing value come compute a rate of return?
Which that the complying with is a an approach of examining capital invest proposals the ignores present value?
The methods of evaluating capital investment proposals have the right to be separated into two general groups--present value approaches and:
When several alternate investment suggest of the same amount are being considered, the one with the biggest net current value is the many desirable. If the alternate proposals indicate different quantities of investment, the is beneficial to prepare a relative ranking that the suggest by making use of a(n):
Which method of analyzing capital invest proposals uses current value ideas to compute the rate of return indigenous the network cash flows expected from resources investment proposals?
The cash payback method is widely used in assessing investments. The adhering to are reasons why this method is used except:
All that the complying with qualitative considerations may influence upon capital investments evaluation except:
All the the adhering to qualitative considerations may affect upon resources investments analysis except:
Which the the complying with provisions of the internal Revenue Code deserve to be used to reduce the amount of the earnings tax expense emerging from funding investment projects?
Adjust the life the Proposal J come a time period that is same to the of Proposal F by estimating a residual worth at the finish of year six.
Assume in analyzing different proposals the Proposal F has a advantageous life of six years and Proposal J has actually a beneficial life of nine years. What is one extensively used technique that makes the propose comparable?
Which that the complying with would no be thought about a good managerial tool in making a decision because that determining a capital investment?
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