2102 Final

Pataasin ang iyong marka sa homework at exams ngayon gamit ang Quizwiz!

Payback period =

Amount invested /Expected annual net cash flow

Describe at least four advantages of budgeting.

Gives you control over your money Helps you organize your spending and savings Enables you to save for expected and unexpected costs Keeps you focused on your money goals

Describe qualitative factors to consider at the outsourcing decision.

Relative net advantage given uncertainty of estimates (costs, risks, etc.) Reliability and number of sources of supply Ability to assure quality Future bargaining position with suppliers Perceptions regarding possible future price changes

Which of the following is a major consideration when analyzing a special pricing decision?

The sales price must be high enough to cover any differential costs to fill the order.

payback

a capital budgeting method that ignores the time value of money

Which of the following best describes the term capital rationing?

a process of ranking and choosing among alternative capital investments based on the availability of funds

If an investment's internal rate of return is higher than the required rate of return, the company should

accept

At the internal rate of return, the present value of net cash inflows will equal the

initial cost of the investment

Which of the following best describes the internal rate of return?

interest rate that makes the net present value of the investment equal to zero

Capital budgeting

involves deciding among various long-term investments

Which of the following is a capital budgeting method?

net present value

Net present value represents the difference between the

present value of the investment's net cash inflows and the investment's initial cost

Net present value

represents the difference between the present value of the investment's net cash inflows and the investment's initial cost

An investment should be accepted if

the net present value is positive


Kaugnay na mga set ng pag-aaral

частини мови російською

View Set

Nutrition in Health: Chapter 9: Vitamin Overview and Fat-Soluble Vitamins

View Set

Chapter 9: Fixed Assets and Intangible Assets

View Set

acct chapter 12: statement of cash flows LS

View Set

Chronic Illness and Older Adults

View Set