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

A-6

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

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.

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

Title Multiple choice Description 1. The net present value (NPV) capital budgeting decision method: can be directly compared between alternatives incorporates the time value of money in the calculations is based on accounting net income indicates an acceptable capital project with a negative value     2. On a capital project, a net present value of ($250): indicates the capital project s rate of return exceeds the company s cost of capital for one project is considered superior to another project with a net present value of $500 indicates the internal rate of return would be unacceptable indicates cash outflows total $250 for the capital project     3. A 13% internal rate of return (IRR) on a capital project indicates all of the following except: the actual rate of return of all cash inflows and outflows that a 13% discount rate will result in the calculation of a net present value of zero a better indication of acceptable capital projects when there is limited capital than the…

QUESTION 5 The net present value of a project tells management what decision to make on that investment. If the net present value is negative, management should: O accept the project because the cost is less than the revenue, thereby adding value to the firm. O reject the project because the present value of future cash-flows is greater than the cost of the project. O reject the project because accepting would reduce the value of the firm. accept or reject depending on the project's payback period. 3 QUESTIONE Click Save and Submit to save and submit. Click Save All Answers to save all answers. E $ 4 Q Search or enter website name R % 5 MacBook Pro T 6 Y & 7 с * 00 8 Save. O

Note:- • Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. • Answer completely. • You will get up vote for sure.

Which method of budgeting was developed in the 1970s to control spending? Group of answer choices Entrepreneurial Program Zero-based Objective and Task

The conflicts in project ranking in capital budgeting as per NPV and IRR may arise because of:  A. Size disparity B. Time disparity C. Life disparity D. All of the above