Final Milestone-13

When analyzing a project, scenario analysis is best suited to accomplishing which one of the following?   Multiple Choice   Determining the minimal level of sales required to break even on an accounting basis   Identifying the potential range of reasonable outcomes   Estimating the residual value of fixed assets   Determining how fixed costs affect NPV   Determining the minimal level of sales required to break even on a financial basis

TRUE OR FALSE a, A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making.   b. One way to increase the effective utilization of a bottleneck is to reduce the number of defective units.   c. Two or more products that are produced from a common input are known as joint products.   d. If the salvage value of equipment at the end of a project is highly uncertain, the salvage value should be ignored in capital budgeting decisions. - e. A cost that is traceable to a segment through activity-based costing is always an avoidable cost for decision making.   f. Eliminating nonproductive processing time is particularly important in a bottleneck operation.   g. In a decision to drop a product, the product should be charged for rent in proportion to the space it occupies even if the space has no alternative use and the rental payment is unavoidable.

Which of the following is/are true for the average accounting return method of project analysis? I. does not need a cutoff rate II. ignores time value of money II. is based on project's cash flows IV. easily obtainable information for computation Multiple Choice I only I, II, II, and IV

Help question 21

A decrease in the sales of a current project because of the launching of a new project is A. irrelevant to the investment decision. B. an overhead expense. C. a sunk cost. OD. cannibalization.

Which of the following is FALSE regarding various methods of project analysis? Both NPV and IRR consider the time value of money. Average Accounting Return ignores the time value of money. Payback focuses on liquidity. O Profitability Index is able to rank projects in the situation of capital rationing. () Payback considers the time value of money. Next Page Page 17 of 3 Previous Page Submit Quiz O of 30 questions saved

Please do not give solution in image format thanku Net Present Value (NPV) analysis is a financial evaluation method used in project management to assess the profitability and viability of investment projects. NPV analysis takes into account the time value of money by discounting future cash flows back to their present value, allowing project managers and stakeholders to make informed decisions regarding the financial feasibility of a project a) A project requires an initial investment of RM100,000 and is expected to generate cash flows of RM30,000 per year for the next five years. The discount rate is 10%. Calculate the Net Present Value (NPV) of the project. b) Describe factors and variables that are taken into consideration when calculating the Net Present Value of a project.

12. Money that has been or will be paid regardless of the decision whether or not to proceed with the project is: A) cannibalization. B) considered as part of the initial investment in the project. C) an opportunity cost. D) a sunk cost.

Why is the original cost estimate corrected based on buyout data? What three types of project costs present the greatest risk to the project manager? What are project labor curves used for?

The advantage(s) of the discounted payback method over the payback method of project analysis include:I. ease of use II. liquidity bias III. arbitrary cutoff point IV. the consideration of time value of money V. works well for research and development projects   Multiple Choice   I, II, III, IV and V   III and V only   IV only   I, II, III and V only   III only

What is not a disadvantage of using the Payback Period Method? Hard to calculate O Ignores time value of money Uses an arbitrary benchmark O Biased against long term project None of the above

7 Which of the following characteristics represent an advantage of the internal rate of return techniques over the accounting rate of return technique in evaluating a project?  I    Recognition of the project’s salvage value.  II   Emphasis on cash flows.  III  Recognition of the time value of money.  Group of answer choices  II and III  I, II, and III  I only  I and II