Reference no: EM1314239
Describe questions on capital budgeting decisions
1. When using the payback method, any cash flows for a project that occur after the payback period are not considered in computing the payback period for that project.
a. True
b. False
2. When making preference decisions about competing investment proposals, the project profitability index is superior to the internal rate of return.
a. True
b. False
3. If salvage value is ignored in depreciating an asset for tax purposes, any sales proceeds received at the end of the life of the asset are fully taxable as income.
a. True
b. False
4. If a company is operating at a profit, the cash inflow resulting from the depreciation tax shield is computed by multiplying the depreciation deduction by one minus the tax rate.
a. True
b. False
5. The present value of a given future cash flow will increase as the discount rate decreases.
a. True
b. False
6. The release of working capital at the termination of an investment project is not a taxable cash inflow.
a. True
b. False
7. If the internal rate of return exceeds the required rate of return for a project, then the net present value of that project is positive.
a. True
b. False
8. The simple rate of return is the same as the internal rate of return.
a. True
b. False
9. The salvage value of new equipment should not be considered when using the internal rate of return method to evaluate a project.
a. True
b. False
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Objective type questions on capital budgeting
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Adjustment in general account balances
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Non parametric test-kruskal wallis test with box plots
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Determine cash payments for wages during the year
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Describe questions on capital budgeting decisions
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Identify and describe the deficiencies in the balance sheet
: Identify and describe the deficiencies in the balance sheet prepared by the company's accountant. Include in your answer items that need additional disclosure, either on the face of the statement or in a note. Your answer to this question may be p..
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Explain questions on investments and transfer pricing
: Explain questions on investments and transfer pricing and capital budgeting and One criticism of the payback method is that it ignores cash flows that occur after the payback point has been reached
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Preparation of multi-step income statement
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Closing entries and statement of retained earnings
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