The term is described as a "formal means of analyzing long-range investment alternatives." OA. time value of money OB. annuity OC. payback period OD. capital budgeting
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- What is the most commonly used capital budgeting procedures? Select one: a. IRR b. Payback period c. Discounted Payback period d. NPV e. Profitability IndexWhich of the following methods of capital budgeting indicates the time period required to recover the investment? a. Internal rate of return b. Accounting Rate of return c. Payback period d. Net present valueWhich of the following methods of capital budgeting tries to equate the present value of cash inflows to present value of cash outflows? a. Net present value b. Payback period c. Internal rate of return d. Accounting Rate of return
- Finding the present value of future cash flows is called and finding the future value of present cash flows is called O A. analytics, tracking B. capital budgeting, short-term budgeting C. discounting, compounding D. financial ratio analysis, financial statement analysis O E. fundamental analysis, technical analysisExplain the meaning and composition of the "return" of a financial investment.Which of the following are present value methods of analyzing capital investment proposals? a. internal rate of return and average rate of return b. average rate of return and net present value c. net present value and cash payback d. net present value and internal rate of return
- What is the MOST important variable of the financial planning process? Select one: a. The costs b. The capacity of the fixed asset c. The pro forma income statement d. The sales forecastWhich capital investment methods require the use of a present value table? Payback and net present value Internal rate of return and net present value Payback and internal rate of return Accounting rate of return and internal rate of return Accounting rate of return and net present valueWhich capital budgeting technique measures all expected future cash inflows and outflows as if they occurred at a single point in time? Group of answer choices a. sensitivity analysis b. accrual accounting rate-of-return method c. net present value method d. payback method
- Differentiate between the Net Present Value method and Internal Rate of Return method of capital budgeting. Please give an explanation with an example for each method.Short-term investment and long-term investment will be recorded in what type of financial statement to evaluate the actual inflow and outflow of the money.Which capital budgeting technique defines returns in terms of income instead of cash flows? a) The payback period b) The internal rate of return technique c) The net present value technique d) The unadjusted rate of return method