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In capital budgeting computations




13. In capital budgeting computations, discounted cash flow methods;A) automatically provide for recovery of initial investment.;B) can be used unless cash flows are uniform from year to year.;C) assume that all cash flows occur at the beginning of a period.;D) responses a, b, and c are all correct.;If the internal rate of return of an invesment in equipment is equal to the discount rate;A) the net present value of the investment will be zero.;B) the payback periodof the investment will be equal to the useful life of the equipment.;C) niether A nor B above will be ture.;D) both A and B above will be ture.


Paper#27231 | Written in 18-Jul-2015

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