It is necessary to assign the appropriate cost of capital for each individual project that reflects that project's ________ when doing capital budgeting
A) life
B) cash flows
C) riskiness
D) managers
Answer: C
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Firms have some choice as to when they disburse cash. A firm may delay making payments to suppliers, employees, and others during the last several days of an accounting period and then make the cash payments during the early part of the next period. The firm
a. decreases cash flow from financing during the first period but increases cash flow from financing during the second period. b. increases cash flow from operations during the first period but decreases cash flow from operations during the second period. c. decreases cash flow from operations during the first period but increases cash flow from operations during the second period. d. increases cash flow from financing during the first period but decreases cash flow from financing during the second period. e. increases cash flow from investing during the first period but decreases cash flow from investing during the second period.
An Edelman study on employee engagement stressed the importance of reinventing the employee experience in novel ways
Indicate whether the statement is true or false
The selling price of a product is originally greater than the variable cost of producing it. Assume that the selling price and the variable cost per unit both increase 20% and fixed costs do not change. What is the effect of this change on the contribution margin per unit and the contribution margin ratio?
a. Contribution margin per unit and the contribution margin ratio both remain unchanged. b. Contribution margin per unit and the contribution margin ratio both increase. c. Contribution margin per unit increases and the contribution margin ratio remains unchanged. d. Contribution margin per unit decreases and the contribution margin ratio remains unchanged.