What criteria must be met for accepting any capital expenditure proposal with respect to minimum rate of return on investment?
Most of the companies will fix a minimum rate of return, and any capital investment proposal that fails to produce that rate of return will be rejected. The minimum rate of return is also known as hurdle rate because it is the rate that must be exceeded or hurdled.
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The premium on bonds payable account would be classified as a(n)
a. current liability; b. adjunct-liability; c. contra-liability; d. noncurrent asset; e. contra-asset
An analyst examines changes in a firm's various ratios over a three-year period—a so-called _____ analysis and performs a _____ analysis comparing a given firm's ratios with those of other firms for a specific period
a. cross-section; time-series b. time-series; cross-section c. profitability; time-series d. time-series; profitability e. none of the above
Hazard Company is considering the acquisition of a machine that costs $375,000. The machine is expected to have a useful life of 6 years, a negligible residual value, an annual cash flow of $150,000, and annual operating income of $87,500. What is the estimated cash payback period for the machine?
A) 3 years B) 4.3 years C) 2.5 years D) 5 years
Freedom of expression is protected from government control in the United States by which one of the following?
A. Third Amendment D. McCain-Feingold Act B. Taft–Hartley Act E. Freedom of Information Act C. First Amendment