For each of the capital budgeting methods listed below, place an X in the correct column, indicating the measurement basis of each, the ability to make comparison among projects, and whether each method reflects or ignores the time value of money. ?Measurement BasisComparison among  projectsTime value of money?CashflowsAccrualincomeAllowscomparisonDifficulttocompare  Reflectstime valueof money  Ignorestime valueof moneyPayback period??????Accounting rate of return??????Net present value??????Internal rate ofreturn??????

What will be an ideal response?



?Measurement
Basis
Comparison among
projects
Time value
of money
?Cash
flows
Accrual
income
Allows
comparison
Difficult
to
compare
Reflects
time value
of money
Ignores
time value
of money
Payback periodX?X??X
Accounting rate of return?XX??X
Net present valueX?XXX?
Internal rate of
return
X?X?X?

Business

You might also like to view...

Which of the following statements about risk is true?

A. The higher the risk, the higher the expected return. B. The higher the risk, the lower the return. C. The lower the risk, the greater the maturity value of the investment. D. The higher the risk, the lower the maturity value of the investment. E. The higher the risk, the lower the risk-free rate.

Business

The _____ model provides application software developed and maintained by a third-party provider and offered to organizations for a recurring fee.

Fill in the blank(s) with the appropriate word(s).

Business

Refer to Oakland Athletics. Other teams have an average payroll of $85 million. Beane’s payroll for the Athletics is only $33 million. His ability to be frugal and yet build a successful team is in large part due to his ability to set goals, give directions, and assign tasks. In other words, Beane excels in ____.

A) consideration B) creating instrumentality C) using decision rules D) initiating structure E) participative management

Business

Discuss the relationship between honesty and leadership.

What will be an ideal response?

Business