Exam 9: Using Accounting Information to Make Managerial Decisions

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In which of the following decisions do managers determine which projects will actually receive funds by rank-ordering them based on selected criteria?

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The accounting rate of return is also known as the

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The value today of the dollars to be paid or received in the future is referred to as

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Capital budgeting differs from cash budgeting in terms of its time horizon.

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Stacey Trail has just won the Lotto.Her prize pays $40,000 at the end of each year for 5 years.In addition, she will receive a one-time payment of $240,000 at the end of 5 years.Using the following factors at 10%, what amount has Stacey really won in the Lotto?

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Which of the following is a factor that influences the discount rate?

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To calculate the present value of a future amount, which of the following tables do you use?

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Once the cash flows and discount rate have been determined, calculate the present value of each cash flow by multiplying each cash flow by the appropriate present value factor.

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