Answer the following statements true (T) or false (F)
1) The payback and accounting rate of return (ARR) methods are suitable for investments with a relatively short time span.
2) The payback and accounting rate of return methods are often used to perform an initial screening of investments.
3) The payback method provides management with valuable information about the time period in which the cash invested will be recouped.
4) The net present value and internal rate of return methods are appropriate for longer-term investments because they ignore the time value of money.
5) Cash inflows include future cash revenue generated from an investment and any future residual value of the asset but exclude any future savings in ongoing cash operating costs resulting from the investment.
1) TRUE
2) TRUE
3) TRUE
4) FALSE
5) FALSE
You might also like to view...
______ is the act of making distinctions or choosing one thing over another; in human resources, it is making distinctions among people.
A. Four-Fifths Rule B. Affirmative action C. Discrimination D. Reverse discrimination
Answer the following statements true (T) or false (F)
Legal services and daycare benefits are not included in OPEBs.
Vertical stretch goals are
A. aligned with current activities, including productivity and financial results. B. the goals that conflict with people's personal values and interests. C. the set of goals whose primary focus is to protect organizations from being sustainable. D. the targets that merely exhort employees in general terms to improve performance. E. subjective and not objective.
The seven largest unsecured creditors have the exclusive right to file a plan of reorganization
with the bankruptcy court. Indicate whether the statement is true or false