It is important to consider a new project's affect on the cash flows of existing projects because of
A) synergy. B) cannibalism. C) sunk costs. D) A and B above.
D
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Whitney earns about $100,000 a year. She and her employer both pay 6.2 percent of Whitney’s pay into __________ by withholding the money from Whitney’s pay check.
A. Social Security B. Medicare C. unemployment insurance D. retirement E. exit pay
In the context of big data, ________ refers to the large number of sources and types of data.
A. volume B. variety C. velocity D. valence
Which of the following is NOT a strength of the payback method of capital budgeting?
A) The payback values are relatively simple to calculate. B) When comparing projects the payback method decision is intuitive. C) The payback method uses all project cash flows in establishing the project payback period. D) It is a quick measure of the inherent risk of a project.
On August 28, 2016, Saturn Drilling Services purchased a machine with a contract price of $400,000 and cash terms of 2/10, n/30. The company paid $8,000 in transportation costs and $8,000 for installation. Sales taxes of $22,000 were paid on the invoice amount. The machine should be recorded as a plant asset in the amount of
A. $400,000. B. $422,000. C. $428,000. D. $430,000.