(Solution) (1) funding budgeting decisions room risky because every one of the adhering to are true except: The outcome is uncertain. Large amounts of money are usually...
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Question: Help with the complying with homework, need in one hour. 18 questions , some are currently answered.1.
Capital budgeting decisions room risky because all of the following are true
The outcome is uncertain.
Large amounts of money space usually involved.
The investment requires a irreversible commitment.
The decision might be challenging or difficult to reverse.
They rarely create net cash flows.
A brand-new manufacturing maker is intended to expense $278,000, have actually an eight-year life, and a
$30,000 rescue value. The an equipment will productivity an yearly incremental after-tax revenue of
$35,000 ~ deducting the straight-line depreciation. Compute the accounting rate of
return for the investment.
The calculation of yearly net cash circulation from a certain investment project should include
all that the following
Revenues generated by the investment.
Cost of commodities generated by the investment.
General and also administrative expenses.
A disadvantage of using the payback duration to compare investment alternatives is that:
It ignores cash flows past the payback period.
It has the time worth of money.
It cannot be supplied when cash flows space not uniform.
It can not be provided if a agency records depreciation.
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It cannot be supplied to compare investments with various initial investments.
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