What criteria must be met before accepting any capital expenditure proposal with respect to minimum rate of return on investment?
Most of the companies will fix a minimum rate of return, and any capital investment proposal that fails to produce that rate of return will be rejected. The minimum rate of return is also known as a hurdle rate because it is the rate that must be exceeded or hurdled.
You might also like to view...
A typewriter has a mean time between failures of 420 hr and mean time to repair of 14 hr. In this case, the availability is ______.
A. 96.8% B. 89.6% C. 77.3% D. 88.1%
Violations of logic ________
A) are also called default logic B) are honest if used intentionally C) are rarely considered to be misleading. D) are unavoidable and are an accepted part of ethical persuasion E) can persuade an audience based on unsound ideas
Patrick owned an acre of land which was being divided into building lots. Nancy was interested in purchasing the corner lot. In a signed writing, Patrick stated "I will sell Nancy Grimes a lot on Route 70 for $5,500 cash, payable on April 30, 2012.". This writing is sufficient under the statute of frauds to make the contract enforceable
a. True b. False Indicate whether the statement is true or false
In the ordinary course of business, Loan2Buy Corporation offers credit to Mai and other consumers and reports on the loans to credit agencies. To save time and money, Loan2Buy generally does not correct or update its reported information. This is most likely to result in
a. a levy of a nominal fine. b. an assessment of damages. c. an order of rescission of the loan contracts. d. no sanctions.