If the traditional payback period method is used to evaluate a capital budgeting project, the project is considered acceptable if _____.
A. the total cash inflows yield a rate of return more than the expected rate of return from the project
B. the payback period is longer than the life of the project
C. there are no cash outflows during the payback period
D. discounted value of cash inflows is less than the initial investment
E. the payback period is less than the maximum cost-recovery time established by the firm
Answer: E
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Referring to Figure 6.1, assume that Boeing is the first to enter the Canadian market. Without a governmental subsidy, the firm maximizes profits by selling ______________ aircraft at a price of $______________, and realizes profits totaling $______________.
a. 4, $12 million, $16 million
b. 4, $16 million, $12 million
c. 8, $12 million, $16 million
d. 8, $16 million, $12 million
Charlotte has a high level of job involvement. She is likely to demonstrate ______.
A. increased organizational citizenship behaviors B. decreased job performance C. decreased self-esteem D. increased turnover
If the average number of customers served per hour is five, then the probability that the service exceeds 27 min for any customer is ______.
A. 74.1% B. 10.5% C. 36.8% D. 17.4%
Which of the following acts abolished fixed commission schedules?
A) Investment Advisers Act of 1940 B) Investment Company Act of 1940 C) Securities Acts Amendments of 1975 D) Insider Trading and Fraud Act of 1988