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CHAPTER 24 PLANNING FOR CAPITAL INVESTMENTS MULTIPLE CHOICE QUESTION PART 6 86. In evaluating high-tech projects, a. only tangible benefits should be considered. b. only intangible benefits should be considered. c. both tangible and intangible benefits should be considered. d. neither tangible nor intangible benefits should be considered. 87. Using a number of outcome estimates to get a sense of the variability among potential ret ...

Other / Other 17 Nov 2016

CHAPTER 24 PLANNING FOR CAPITAL INVESTMENTS PART 1 CHAPTER LEARNING OBJECTIVES 1. Discuss capital budgeting evaluation, and explain inputs used in capital budgeting. Management gathers project proposals from each department; a capital budget committee screens the proposals and recommends worthy projects. Company officers decide which projects to fund, and the board of directors approves the capital budget. In capital budgeting, estimated ...

Other / Other 17 Nov 2016

CHAPTER 24 PLANNING FOR CAPITAL INVESTMENTS MULTIPLE CHOICE QUESTION PART 4 46. The cash payback technique a. considers cash flows over the life of a project. b. cannot be used with uneven cash flows. c. is superior to the net present value method. d. may be useful as an initial screening device. 47. If an asset costs $240,000 and is expected to have a $40,000 salvage value at the end of its ten-year life, and generates annual net ...

Other / Other 17 Nov 2016

BUS/371 BUS371 BUS 371Chapter 2—The Evolution of Management Thinking PART 3 41. A contingency view perceives every situation as unique. 42. The inherent focus of TQM is on managing the total organization to deliver quality to the customer. 43. Benchmarking involves finding out what the customer wants. 44. The implementation of small, incremental improvements in all areas of the organization on an ongoing basis refers t ...

Other / Other 17 Nov 2016

CHAPTER 24 PLANNING FOR CAPITAL INVESTMENTS MULTIPLE CHOICE QUESTION PART 7 106. Cleaners, Inc. is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Cleaners requires a 10% rate of return. Present Value of an Annuity of 1 Period 8% 9% 10% 11% 12% 15% 6 4.623 4.486 4 ...

Other / Other 17 Nov 2016

CHAPTER 24 PLANNING FOR CAPITAL INVESTMENTS TRUE-FALSE STATEMENTS PART 2 TRUE-FALSE STATEMENTS 1. Capital budgeting decisions usually involve large investments and often have a significant impact on a company's future profitability. 2. The capital budgeting committee ultimately approves the capital expenditure budget for the year. 3. For purposes of capital budgeting, estimated cash inflows and outflows are preferred for inpu ...

Other / Other 17 Nov 2016

BUS/371 BUS371 BUS 371Chapter 2—The Evolution of Management Thinking PART 1 INDIANA STATE BUS 371 Chapter 2—The Evolution of Management Thinking TRUE/FALSE 1. A historical perspective provides a narrower way of thinking, a way of searching for patterns and determining whether they recur across time periods. 2. Studying history is a way to achieve strategic thinking, see the big picture, and improve conceptual ski ...

Other / Other 17 Nov 2016

BUS/371 BUS371 BUS 371Chapter 2—The Evolution of Management Thinking PART 2 21. Unity of direction principle proposes that similar activities in an organization should be grouped together under one manager. 22. The scalar chain is a hypothetical chain that provides horizontal links between unionized workers in different departments in an organization. 23. Scientific management focuses on employee competence, whereas admi ...

Other / Other 17 Nov 2016

CHAPTER 24 PLANNING FOR CAPITAL INVESTMENTS MULTIPLE CHOICE QUESTION PART 5 66. A company's cost of capital refers to the a. rate the company must pay to obtain funds from creditors and stockholders. b. total cost of a capital project. c. cost of printing and registering common stock shares. d. rate of return earned on common stock. 67. When a capital budgeting project generates a positive net present value, this means that the pro ...

Other / Other 17 Nov 2016

MGT 101 Chapter 6--Managing Small Business Start-Ups PART 4 51. An entrepreneur: A. assumes the risks of the business. B. reaps the rewards of the business. C. assumes the financial and legal risks of ownership. D. recognizes a viable idea for a business product or service and carries it out. E. all of these. 52. Tracy's Trikes believes that each employee should enjoy the idea of working on something that is new, creative, ...

Other / Other 16 Nov 2016