Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
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Question
How would you classify dividends from investments on a cash budget?
a.
Cash brought forward
b.
Payment
c.
Receipt
d.
Opening balance
When comparing mutually exclusive alternatives that have different lives by the present worth method, it is necessary to:
a.
Always compare them over a time period of equal service
b.
Find the present worth over one life cycle of each alternative
c.
Always compare them over a period equal to the life of the shorter-lived alternative
d.
Always compare them over a period equal to the life of the longer-lived alternative
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