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...
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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