Decisions to install brand-new tools, rearea old devices, and purchase or construct a brand-new structure are examples of
a.Investments have to earn a reasonable price of returnb.Employees are able to identify and also propose capital tools for their departments or departmentsc.Proposals need to enhance long term objectives.d.All of the over.
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By converting dollars to be got later into existing dollars, the present worth methods take right into consideration that money:
Which of the following are 2 methods of analyzing capital investment proposals that both neglect current value?
The method of analyzing capital investment proposals that divides the estimated average yearly income by the average investment is:
The primary advantages of the average price of rerevolve approach are its ease of computation and the truth that:
Which method for evaluating resources investment proposals reduces the supposed future net cash flows originating from the proposals to their current worths and also computes a net present value?
Which of the following have the right to be offered to location funding investment proposals including different quantities of investment on a similar basis for functions of net existing value analysis?
The proposal is desirable and also the price of return supposed from the proposal exceeds the minimum price supplied for the evaluation.
An analysis of a proposal by the net current value technique suggested that the present worth of future cash inflows surpassed the amount to be invested. Which of the adhering to statements best describes the outcomes of this analysis?
Which technique of evaluating resources investment proposals provides the concept of existing worth to compute a price of return?
Which of the complying with is an approach of analyzing funding investment proposals that ignores present value?
The approaches of evaluating funding investment proposals can be separated into two general groups--existing value techniques and:
When a number of alternative investment proposals of the same amount are being taken into consideration, the one via the largest net present value is the many desirable. If the different proposals involve different quantities of investment, it is advantageous to prepare a family member ranking of the proposals by utilizing a(n):
Which technique of evaluating capital investment proposals supplies current worth principles to compute the rate of return from the net cash flows intended from funding investment proposals?
The cash payback method is extensively offered in evaluating investments. The complying with are reasons why this method is offered except:
All of the complying with qualitative considerations might impact upon funding investments analysis except:
All of the adhering to qualitative considerations might impact upon funding investments analysis except:
Which of the adhering to provisions of the Internal Revenue Code can be supplied to mitigate the amount of the income taxes cost arising from capital investment projects?
Adsimply the life of Proposal J to a time duration that is equal to that of Proposal F by estimating a residual worth at the end of year six.
Assume in analyzing alternate proposals that Proposal F has a advantageous life of 6 years and Proposal J has actually a useful life of nine years. What is one widely offered strategy that makes the proposals comparable?
Which of the adhering to would not be considered a good managerial tool in making a decision for determining a resources investment?
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