Investment decision: Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs. To identify: The correct statement from the given statements.

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Answer 1

Question

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

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Chapter 15 Homework i 10 0.83 points Saved Help Save & Exit Submit Check my work QS 15-8 (Algo) Computing predetermined overhead rates LO P3 A company estimates the following manufacturing costs at the beginning of the period: direct labor, $520,000; direct materials, $216,000; and factory overhead, $141,000. Required: eBook 1. Compute its predetermined overhead rate as a percent of direct labor. 2. Compute its predetermined overhead rate as a percent of direct materials. Ask Complete this question by entering your answers in the tabs below. Print Required 1 Required 2 References Mc Graw Hill Compute its predetermined overhead rate as a percent of direct labor. Overhead Rate Numerator: 1 Denominator: = Overhead Rate = Overhead Rate = 0

Answer 2

Question

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

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Answer 3

Question

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

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Answer 4

Question

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

Answer 6

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

Answer 7

Chapter 11, Problem 1MCQ

To determine

Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Answer 8

Expert Solution & Answer

Answer to Problem 1MCQ

Solution:

Option a.

Hurdle rate of return.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Option a.

Hurdle rate of return can be referred to as a minimum rate that the corporation expects while investing in a particular project. It is also known as target rate.

Hence, option (a) is correct.

Option b.

Payback period is a type of capital budgeting technique which describes the number of year or length of time needed for proposal‘s cumulative cash inflow to be equal to its cash outflow.

Hence, option (b) is not correct.

Option c.

Internal rate of return can be defined as a metric applied used to measure the profitability of potential investment. It is a discount rate which makes net present value of all cash flow equals to zero.

Hence, option (c) is not correct.

Option d.

The average rate of return is a type of capital budgeting technique which is based on accounting principle of return on investment. It is the annualized net income earned on the average funds invested.

Hence, option (d) is not correct.

Option e.

Maximum rate of return is the maximum proportion of return a corporation expects from the project. This rate is generally always beyond the estimated targets.

Hence, option (e) is not correct.

Answer 12

Conclusion

Hence, it can be concluded that the minimum acceptable rate of return for an investment decision is the hurdle rate of return. Therefore, option (a) is correct.

Answer 13

Ch. 11 - Prob. 1MCQ Ch. 11 - Prob. 2MCQ Ch. 11 - Prob. 3MCQ Ch. 11 - Prob. 4MCQ Ch. 11 - Prob. 5MCQ Ch. 11 - Prob. 1DQ Ch. 11 - What is capital budgeting?Ch. 11 - Identify four reasons that capital budgeting...Ch. 11 - Prob. 4DQ Ch. 11 - Prob. 5DQ

Investment decision: Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs. To identify: The correct statement from the given statements.

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Investment decision:

Investment decision can be referred to as capital budgeting. It involves finding solutions to questions like whether to add to capital assets today will increase the revenues of tomorrow to cover costs.

To identify: The correct statement from the given statements.

Answer to Problem 1MCQ

Explanation of Solution

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Chapter 11 Solutions