You are watching: A method of evaluating capital investment proposals that ignore present value includes
Decisions come install brand-new equipment, replace old equipment, and purchase or construct a new building are instances of
a.Investments must earn a reasonable rate of returnb.Employees room able to determine and also propose capital equipment because that their divisions or departmentsc.Proposals should enhance long ax goals.d.All the the above.
By convert dollars to be received in the future into current dollars, the present value methods take into factor to consider that money:
Which that the complying with are two techniques of analyzing capital invest proposals the both ignore present value?
The method of examining capital investment proposals that divides the approximated average yearly income through the mean investment is:
The primary benefits of the typical rate of return an approach are its lull of computation and the fact that:
Which method for evaluating capital invest proposals reduce the supposed future network cash flows originating indigenous the proposals come their current values and also computes a net present value?
Which that the complying with can be supplied to place resources investment proposals involving different amounts of invest on a similar basis for functions of net present value analysis?
The proposal is desirable and also the rate of return meant from the proposal above the minimum rate offered for the analysis.
An evaluation of a proposal by the net current value technique indicated that the present value the future cash inflows surpassed the quantity to it is in invested. I beg your pardon of the following statements best describes the outcomes of this analysis?
Which method of assessing capital invest proposals provides the ide of present value come compute a rate of return?
Which the the following is a an approach of evaluating capital investment proposals that ignores existing value?
The approaches of assessing capital invest proposals have the right to be separated into two general groups--present value approaches and:
When several alternative investment propose of the same amount space being considered, the one through the largest net existing value is the many desirable. If the different proposals involve different quantities of investment, the is beneficial to prepare a relative ranking of the proposals by making use of a(n):
Which method of analyzing capital investment proposals uses existing value concepts to compute the price of return from the net cash flows expected from resources investment proposals?
The cash payback an approach is widely supplied in analyzing investments. The following are factors why this an approach is provided except:
All the the adhering to qualitative considerations may influence upon resources investments evaluation except:
All the the adhering to qualitative considerations may affect upon capital investments analysis except:
Which of the adhering to provisions the the inner Revenue Code can be supplied to alleviate the amount of the revenue tax expense developing from funding investment projects?
Adjust the life the Proposal J to a time duration that is equal to the of Proposal F by estimating a residual worth at the finish of year six.
Assume in analyzing alternate proposals that Proposal F has actually a useful life of 6 years and Proposal J has a advantageous life of ripe years. What is one commonly used method that renders the propose comparable?
Which the the following would no be thought about a great managerial device in making a decision because that determining a resources investment?
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