Flashcards in Chp4-Quiz Deck (10):
To determine cash flow depreciation is
added to net income
Which of the following items is a cost in a capital budgeting incremental analysis?
The internal rate of return is the discount factor necessary to make an investment's NPV greater than one.
***Which of the following discounted cash flow techniques matches the present value with the future value so that the net result is zero?
***The ITC in capital budgeting analysis is
***The payback method accounts for the time value of money.
***In theory, the residual value is the present value of future cash flows beyond the time horizon.
NPV reports in present dollar terms how much value will be added to a company as a result of making a particular investment.
A technique that is widely used to identify incremental benefits and costs is