The net present value and internal rate of return methods of decision making in capital budgeting are superior to the payback method in that they
a. are easier to implement.
b. consider the time value of money.
c. require less input.
d. reflect the effects of sensitivity analysis.
B
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Compute gross profit.
Lakeshore Manufacturing provided the following information for the month ended March 31:
A) $11,900
B) $17,400
C) $22,900
D) $5900
Funds obtained from ________ are the least expensive in terms of cost and control.
A. commercial banks B. private placement C. the entrepreneur's personal resources D. friends and family
A negative deviational variable is the amount by which a goal level is exceeded
Indicate whether this statement is true or false.
Which of the following statements is not true:
A. Accounts receivable are classified as assets. B. Accounts receivable are increased by customer payments. C. Accounts receivable arise from credit sales. D. Accounts receivable are increased by billings to customers. E. Accounts receivable are held by a seller.