Homework answers / question archive / Question 1 4 / 4 pts The calculation of the payback period for an investment when net cash flow is even (equal) is:    Total net cash flow/Annual net cash flow    Total net cash flow/Cost of investment    Annual net cash flow/Cost of investment    Cost of investment/Annual net cash flow     Question 2 4 / 4 pts Capital investment decisions often involve all of the following except _________________

Question 1 4 / 4 pts The calculation of the payback period for an investment when net cash flow is even (equal) is:    Total net cash flow/Annual net cash flow    Total net cash flow/Cost of investment    Annual net cash flow/Cost of investment    Cost of investment/Annual net cash flow     Question 2 4 / 4 pts Capital investment decisions often involve all of the following except _________________

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Question 1

4 / 4 pts

The calculation of the payback period for an investment when net cash flow is even (equal) is:

  

Total net cash flow/Annual net cash flow

  

Total net cash flow/Cost of investment

  

Annual net cash flow/Cost of investment

  

Cost of investment/Annual net cash flow

 

 

Question 2

4 / 4 pts

Capital investment decisions often involve all of the following except _________________.

  

short periods of time

  

risk

  

qualitative factors or considerations

 

large amounts of money

 

 

Question 3

4 / 4 pts

Which of the following is an objective of capital budgeting?

  

To eliminate all risk.

  

To reduce the number of investment activities.

  

To earn a satisfactory return on investment.

  

To reverse past decisions.

 

 

Question 4

0 / 4 pts

The time value of money concept:

  

Means that a dollar tomorrow is worth more than a dollar today.

  

Means that a dollar today is worth less than a dollar tomorrow.

  

Means that a dollar today is worth more than a dollar tomorrow.

  

Means that "Time is money."

 

 

Question 5

0 / 4 pts

An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as:

  

Net present value.

   

Annual net cash flows.

   

Unamortized carrying value.

   

Payback period.