BMAL 590 ACCOUNTING Exam Questions With Correct Answers
Already Passed!!!
1. Decisions to install new equipment, Capital investment analysis
replace old equipment, and purchase or
construct a new building are
examples of
Net present value and internal rate
2. Which of the following are present of re-
value
methods of analyzing capital investment pro- turn
posals?
3. By converting dollars to be received has a time value
in the future into current dollars, the
present value methods take into
consideration that money
it emphasizes the amount of income
4. The primary advantages of the
average rate
of return method are its ease of computation earned over the life of
the proposal
and the fact that
5. Which of the following can be used to Present value index
place capital investment proposals
involving differ- ent amounts of
investment on a comparable basis for
purposes of net present value analy- sis?
6. An analysis of a proposal by the net The proposal is desirable and the
present rate
value method indicated that the present val- of return expected from the
proposal ex- ue exceed the amount to be invested. Which ceeds the
minimum rate used for the of the following statements best describe
the analysis
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17
, BMAL 590 ACCOUNTING Exam Questions With Correct Answers
Already Passed!!!
results of this analysis?
7. In general, present value methods of The present value methods consider
ana- lyzing capital investments are that a dollar today is worth more
more desir- able than methods than a dollar in the future due to
ignoring present value because the potential earning power of that
dollar
2/
17
, BMAL 590 ACCOUNTING Exam Questions With Correct Answers
Already Passed!!!
8. Which method of evaluating capital Internal rate of return
invest- ment proposals uses the
concept of present value to compute
a rate of return?
9. When several alternative investment propos- Present value index
als of the same amount are being
consid- ered, the one with the
largest net present value is the most
desirable. If the alternative proposal
involve different amounts of invest-
ment, it is useful to prepare a relative
ranking of the proposals by using
a(n)
10. Which method of evaluating capital indicated that the
invest- ment proposals uses present pre-
value concepts to compute the rate of
return from the net cash flows
expected from capital investment
proposals?
11. The present value index is computed
using which of the following
formulas?
12. Which of the following is a present
value method of analyzing capital
investment pro- posals?
13. An analysis of a proposal by the
net pre- sent value method
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17
Already Passed!!!
1. Decisions to install new equipment, Capital investment analysis
replace old equipment, and purchase or
construct a new building are
examples of
Net present value and internal rate
2. Which of the following are present of re-
value
methods of analyzing capital investment pro- turn
posals?
3. By converting dollars to be received has a time value
in the future into current dollars, the
present value methods take into
consideration that money
it emphasizes the amount of income
4. The primary advantages of the
average rate
of return method are its ease of computation earned over the life of
the proposal
and the fact that
5. Which of the following can be used to Present value index
place capital investment proposals
involving differ- ent amounts of
investment on a comparable basis for
purposes of net present value analy- sis?
6. An analysis of a proposal by the net The proposal is desirable and the
present rate
value method indicated that the present val- of return expected from the
proposal ex- ue exceed the amount to be invested. Which ceeds the
minimum rate used for the of the following statements best describe
the analysis
1/
17
, BMAL 590 ACCOUNTING Exam Questions With Correct Answers
Already Passed!!!
results of this analysis?
7. In general, present value methods of The present value methods consider
ana- lyzing capital investments are that a dollar today is worth more
more desir- able than methods than a dollar in the future due to
ignoring present value because the potential earning power of that
dollar
2/
17
, BMAL 590 ACCOUNTING Exam Questions With Correct Answers
Already Passed!!!
8. Which method of evaluating capital Internal rate of return
invest- ment proposals uses the
concept of present value to compute
a rate of return?
9. When several alternative investment propos- Present value index
als of the same amount are being
consid- ered, the one with the
largest net present value is the most
desirable. If the alternative proposal
involve different amounts of invest-
ment, it is useful to prepare a relative
ranking of the proposals by using
a(n)
10. Which method of evaluating capital indicated that the
invest- ment proposals uses present pre-
value concepts to compute the rate of
return from the net cash flows
expected from capital investment
proposals?
11. The present value index is computed
using which of the following
formulas?
12. Which of the following is a present
value method of analyzing capital
investment pro- posals?
13. An analysis of a proposal by the
net pre- sent value method
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