The two cardinal rules that financial analysts should follow to avoid errors are: (1) in the NPV equation, the numerator should use income calculated in accordance with generally accepted accounting principles, and (2) all incremental cash flows should be considered when making accept/reject decisions for capital budgeting projects.
Answer the following statement true (T) or false (F)
False
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A study conducted by the University of Southern California indicates that as the current recession has worn on, most U.S. companies have chosen to cut the number of public relations professionals
Indicate whether the statement is true or false
One of the easiest things a salesperson can do is to care about customers.
Answer the following statement true (T) or false (F)
Two methods used to determine equivalent units of production in process costing are
A) weighted average and FIFO B) FIFO and LIFO C) weighted average and LIFO D) weighted average and exact costing
Which of the following decisions by management could increase a firm's Market Value Added (MVA)?
A) Improve the rate of return on the existing capital base. B) Invest more capital in attractive projects with returns that exceed the cost of capital. C) Stop investing in projects that have returns less than the appropriate cost of capital. D) All of the above.