1 the net present value method takes into account: a) the cash

1
The net present value method takes into account:   [removed]A) the cash flow over the life of the project and the time value of money.   [removed]B) the cash flow over the life of the project but not the time value of money.   [removed]C) the time value of money but not the cash flow over the life of the project.   [removed]D) neither the cash flow over the life of the project nor the time value of money.     2
An increase in the discount rate will:   [removed]A) compensate for reduced risk.   [removed]B) have no effect on net present value.   [removed]C) increase the present value of future cash flows.   [removed]D) reduce the present value of future cash flows.     3
The following data pertain to an investment that is being considered by the management of Hanson Company.


The net present value of the proposed investment is:

  [removed]A) ($6,860).   [removed]B) $-0-.   [removed]C) $1,242.   [removed]D) $6,710.     4
In comparing two investment alternatives, the difference between the net present values of the two alternatives obtained using the total-cost approach will be:   [removed]A) less than the net present value obtained using the incremental cost approach.   [removed]B) the same as the net present value obtained using the incremental cost approach.   [removed]C) greater than the net present value obtained using the incremental cost approach.   [removed]D) indeterminable.     5
Hartley Company is considering the following investment proposals.

How should management rank the proposals in terms of preference using the profitability index?   [removed]A) D, B, C, A   [removed]B) B, D, C, A   [removed]C) B, D, A, C   [removed]D) A, C, B, D     6
The preference rule for ranking projects by the profitability index is:   [removed]A) the higher the profitability index, the more desirable the project.   [removed]B) the lower the profitability index, the more desirable the project.   [removed]C) the higher the sunk cost, the more desirable the project.   [removed]D) the lower the sunk cost, the more desirable the project.     7
Which of the following statements is correct?   [removed]A) The payback period is the length of time it takes for an investment to recoup its own initial cost out of the cash receipts it generates.   [removed]B) Projects with shorter payback periods are always more profitable than projects with longer payback periods.   [removed]C) The payback method of making capital budgeting decisions gives full consideration to the time value of money.   [removed]D) If new equipment is replacing old equipment, any salvage received from sale of the old equipment should not be considered in computing the payback period of the new equipment.     8
Hamell Company has gathered the following data on a proposed investment project.

The net present value on the proposed investment is closest to:   [removed]A) $(96,720).   [removed]B) $80,000.   [removed]C) $91,600.   [removed]D) $491,600.     9
Hamell Company has gathered the following data on a proposed investment project.

(Note that this is the same data that was provided for the previous question.) The payback period for the proposed investment is closest to:   [removed]A) 0.2 years.   [removed]B) 1.0 years.   [removed]C) 3.0 years.   [removed]D) 5.0 years.     10
Hamell Company has gathered the following data on a proposed investment project.

(Note that this is the same data that was provided for the previous question.) Assume that excess of incremental revenues over the incremental expenses (including depreciation) equal the annual cash inflows. The simple rate of return on the proposed investment is closest to:   [removed]A) 10%.   [removed]B) 20%.   [removed]C) 30%.   [removed]D) 40%.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

We value our customers and so we ensure that what we do is 100% original..
At Custom Writing, we believe in exemplary services that are fully geared toward customer satisfaction. That is why we don’t shy away from giving you the following guarantees;

Money-back guarantee

Trusting us with your work is the best decision you have made, our pleasure lies in seeing you satisfied at 100%. If in the rear chance it happens that you are not satisfied, then know that we will equally not be satisfied. But worry not, our 30 days- Money back guarantee is all you need and that is what we promise you..

Read more

Zero-plagiarism guarantee

We utilize profoundly equipped and gifted writers who produce unique papers liberated from any form of plagiarism. To guarantee this, we run all papers finished by our scholars through a Plagiarism checker to ensure uniqueness and originality. In any case, on the off chance that you have vulnerabilities about the originality or falsification of any paper we have finished and conveyed to you, please get in touch with us straight away. We will quickly investigate, and if the paper is seen as counterfeited, we will take suitable actions including but not limited to, revising the paper for free and in extreme cases we will activate the money back guarantee.

Read more

Free-revision policy

We have an obligation deliver great and specially composed assignments. Our revision strategy endeavors to ensure total client satisfaction, comfort, and a genuine feelings of serenity. We make minor updates and corrections to the underlying request as part of our continuous assistance. However, revisions should just incorporate changes and alterations that were not effectively met, in the underlying request and that are inside the rules as per the current request structure..

Read more

Privacy policy

Our client's Data is an Integral part of our business but clearly, we are not in the business of offering our clients' very own data to others. We realize that you care how your online data is utilized and shared, we equally value your trust that we will do so cautiously and sensibly. We Promise to ensure the security of your own data during transmission by utilizing encryption conventions and programming. Likewise assist us with securing your information by not sharing your passwords and usernames.

Read more

Fair-cooperation guarantee

In submitting a request with us, you consent to the services we give. We will strive to take the necessary steps to convey a far reaching paper according to your prerequisites. Equally we depend on your cooperation to guarantee that we convey on this order.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency