Classification of capital budgeting project

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1. Which of the following would not be a classification of a capital budgeting project?

a. A regulatory project

b. An expansion project

c. A study by Greenpeace to determine the harm to the ozone layer caused by all the hairspray used by Donald Trump

d. A replacement project

e. All of the above are examples of capital budgeting projects

2. Marko, Inc. is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $5,700, $10,700, and $16,900 over the next three years, respectively. After that time, they feel the business will be worthless. Marko has determined that a rate of return of 11 percent is applicable to this potential purchase. What is Marko willing to pay today to buy ABC Co.?

$35,797.50

$33,300.00

$24,457.63

$26,176.63

$27,560.91

Reference no: EM131905694

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