Which of the following capital expenditure planning and control techniques has been criticized because it might mistakenly imply that the earnings are reinvested at the rate of return earned by the investment
a. Accounting rate of return.
b. Internal rate of return.
c. Net present value method.
d. Payback method.
b
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If a fixed asset with a book value of $10,000 is traded for a similar fixed asset, a trade-in allowance of $15,000 isgranted by the seller, and the transaction is deemed to have commercial substance, the buyer would report a gainon exchange of fixed assets of $5,000
a. True b. False Indicate whether the statement is true or false
The amount of net income is added on the statement of retained earnings.
Answer the following statement true (T) or false (F)
No warranties are given out by the person who negotiates or transfers a document of title
a. True b. False Indicate whether the statement is true or false
The required return on a security is 10%, the risk-free rate is 5%, and the return on the market is 14%. What is the beta of the firm?
A) 0.14 B) 0.55 C) 0.83 D) 1.00 E) 1.40