Multiple Choice
In general, present value methods of analyzing capital investments are more desirable than methods ignoring present values because:
A) the calculations in methods that ignore present value are more complex than those in methods using present value.
B) the present value methods consider that a dollar today is worth more than a dollar in the future due to the potential earning power of that dollar.
C) the calculations in methods that consider present value are less complex than those methods ignoring present value.
D) the present value methods consider that a dollar in the future is worth more than a dollar today due to the potential earning power of that dollar.
Correct Answer:
Verified
Correct Answer:
Verified
Q33: Care must be taken while making capital
Q34: In capital rationing, alternative proposals that survive
Q35: Internal rate of return is often called
Q36: If a proposed expenditure of $400,000 for
Q37: Which of the following can be used
Q39: When evaluating a proposal by use of
Q40: When evaluating a proposal by use of
Q41: The two methods that use present values
Q42: A disadvantage of the average rate of
Q43: The internal rate of return method of