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Exam (elaborations)

BMAL 590 Accounting Questions And Answers

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  • Course
  • BMAL 590
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  • BMAL 590

BMAL 590 Accounting Questions And Answers Which of the following can be used to place capital investment proposals involving different amounts of investment on a comparable basis for purposes of net present value analysis? Present value index An analysis of a proposal by the net present va...

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  • November 12, 2024
  • 12
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • BMAL 590
  • BMAL 590
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BMAL 590 Accounting Questions And
Answers

Which of the following can be used to place capital investment proposals involving different

amounts of investment on a comparable basis for purposes of net present value analysis?

Present value index




An analysis of a proposal by the net present value method indicated that the present value exceed

the amount to be invested. Which of the following statements best describe the results of this

analysis? The proposal is desirable and the rate of return expected from the proposal

exceeds the minimum rate used for the analysis




In general, present value methods of analyzing capital investments are more desirable than

methods ignoring present value because The present value methods consider that a dollar

today is worth more than a dollar in the future due to the potential earning power of that dollar




Which method of evaluating capital investment proposals uses the concept of present value to

compute a rate of return? Internal rate of return




When several alternative investment proposals of the same amount are being considered, the one

with the largest net present value is the most desirable. If the alternative proposal involve

, BMAL 590 Accounting Questions And
Answers
different amounts of investment, it is useful to prepare a relative ranking of the proposals by

using a(n) Present value index




Which method of evaluating capital investment proposals uses present value concepts to

compute the rate of return from the net cash flows expected from capital investment proposals?

Internal rate of return




The present value index is computed using which of the following formulas? Total present

value of net cash flow/Amount to be invested




Which of the following is a present value method of analyzing capital investment proposals?

Net present value




An analysis of a proposal by the net present value method indicated that the present value of

future cash flows exceeded the amount to be invested. Which of the following statements best

describes the results of this analysis? The proposal is desirable and the rate of return

expected from the proposal exceeds the minimum rate used for the analysis

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