kitty donald
New member
1- If the net present value of the investment is $8,510, then:
A. the rate of return is less than the cost of capital.
B. the present value of the cash flows are more than the investment.
C. the cost of capital is higher than the internal rate of return.
D. the present value of the cash flows is $8,510 less than the investment
2- Capital budgeting differs from operational budgeting because:
A. depreciation calculations are required.
B. it considers the time value of money.
C. operating expenses are not relevant.
D. capital budgets don't affect cash flow
A. the rate of return is less than the cost of capital.
B. the present value of the cash flows are more than the investment.
C. the cost of capital is higher than the internal rate of return.
D. the present value of the cash flows is $8,510 less than the investment
2- Capital budgeting differs from operational budgeting because:
A. depreciation calculations are required.
B. it considers the time value of money.
C. operating expenses are not relevant.
D. capital budgets don't affect cash flow