Net present value of the investment and Capital Budget Question Help?
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
Investment best answer:
Answer by jeff410
B. the present value of the cash flows are more than the investment.
Investment
Save Darfur protest at Franklin Templeton Investments
Image by Steve Rhodes
Part of a national day of action on October 15th calling for divestment
www.divestfordarfur.org
www.savedarfur.org
Orignal From: Net present value of the investment and Capital Budget Question Help? and Save Darfur protest at Franklin Templeton Investments
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