The following are discounting techniques in capital budgeting, except?     discounted payback accounting rate of return present value index modified internal rate of return

Q: Which of the following statement is   true?   O a. Sunk cost is not relevant in   capital…

A: Capital budgeting decisions are used to evaluate new projects, opportunities, and investments such…

Q: “Capital budgeting has the same focus as accrual accounting.” Do you agree? Explain.

A:

Q: In proper capital budgeting analysis we evaluate incremental __________ cash flows. Select one: a.…

A: Capital budgeting analysis helps to make financial decisions. A project that is profitable can be…

Q: Explain why sunk costs should not be included in a capital budgeting analysis but opportunity costs…

A: A sunk cost is the cost that has been incurred as a result of past events and such cost may not be…

Q: Which of the following should NOT be included as a cash flow in initial, operating or terminal cash…

A: There are various different costs associated while taking a capital budgeting decision.

Q: Which of the following methods of methods of capital budgeting is base cashflows: Payback NPV…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: Is capital budgeting decisions can be reversed

A: In capital budgeting we review different projects to determine their financial feasibility and…

Q: Why are discounted cash flow methods of making capital budgeting decisions superior to othermethods?

A:

Q: Why does capital budgeting rely on an analysis of cash flows rather than on net income? Base your…

A: Since, there are more than one question is posted at a time. The answer for first question is only…

Q: chance that a cash flow will turn out to be worse than the estimate. b. the chance that a…

A: Step 1 The planning process used to assess whether an entity's long-term investment is appropriate…

Q: Please explain why the net present value (NPV) method is preferred over the payback method when…

A: NPV method is preferred over payback method because of following reasons 1. NPV method shows project…

Q: what is an example of a discounted payback period? which is one of the six models of a capital…

A: Before investing in new assets or projects, feasibility of the project is evaluated by using various…

Q: Which of the following statements indicate a disadvantage of using the discounted payback period for…

A: Discounted payback period is the procedure of capital budgeting which is used to evaluate the…

Q: Define the most important capital budgeting techniques. Name at least two capital budgeting…

A: It refers to the long term investment decisions that has been taken by the top management of a…

Q: Which capital budgeting technique measures all expected future cash inflows and outflows as if they…

A: Based on the cost of capital the net present value method discounts the future cash flows (both cash…

Q: Discuss the notions of conventional and nonconventional cash flows in capital budgeting. Which…

A: Conventional Cash Flows: These are cash flows in a project where the pattern of initial investment…

Q: The capital budgeting is associated with Select one: a. None of the options b. Short term assets c.…

A: Capital budgeting is the tool used to analyze the long term investment. There are different…

Q: Most capital budgeting techniques involve analysis of net operating profits. True or False

A: Capital Budgeting is the process by which a business makes investment decision in long term assets.…

Q: Explain what the techniques of Strategic Capital Budgeting are

A: Strategic capital Budgeting plays a significant role in evaluating long term projects that…

Q: Real options in capital budgeting can be classified in all of the following ways except: investment…

A: Real option used to provide the right to the management of the firm, but there will no obligation…

Q: In capital budgeting, one advantage of the internal rate of return is that it does not require the…

A: Introduction: Capital budgeting: Capital budgeting is the technique used for analyzing the…

Q: Which of the following-would be consistent with a more aggressive approach to financing working…

A: Working capital refers to the short-term capital required by a company to meet its immediate…

Q: Compare capital budgeting decision criteria, Net Present Value (NPV) and Internal Rate of Return…

A: Part (1): Answer: Net present value approach predicts how much a future project would add to the…

Q: Which of the following capital budgeting techniques recognizes noncash revenues and expenses? *…

A: Solution: "Accounting rate of return" recognizes noncash revenues and expenses. This is because…

Q: Describe Capital budgeting techniques with their respective strength and weakness for IRR , NPV , PI…

A: Capital budgeting is the process used by the companies to determine whether to invest in a long-term…

Q: Short term investment decisions are also called as Select one: O a. Liquidity decision b. Finance…

A: Investment decisions can be both short term and long term

Q: In most capital budgeting decisions, the emphasis

A: The statement is false.

Q: Which of the following is not a reason for risk and uncertainty in capital budgeting? a. Decisions…

A: Capital Budgeting decision are based on various factors

Q: Net present value and the payback period are examples of discounted cash flow methods used in…

A: Various methods used in capital investment decisions are Pay back period, Accounting Rate of…

Q: One of the modern methods of Capital Budgeting is: a. Profitability index O b. Accounting Rate of…

A:

Q: What capital budgeting rule is a simple but imperfect attempt to solve the capital rationing…

A: Answer: Option c.  Payback rule   Explanation: Payback rule is a very simple method which is used to…

Q: Identify “relevant” cash flows that should and should not be included in a capital budgeting…

A: Before investing in new projects or assets, profitability of the project is evaluated by using…

Q: Describe and explain the significance of each of the following: payback period, internal rate of…

A: Payback Period: A project’s payback period is the number of periods required for the project’s cash…

Q: Compare capital budgeting decision criteria, Net Present Value (NPV) and Internal Rateof Return…

A: Part (a): Answer: Net present value approach predicts how much a future project would add to the…

Q: Comparing the estimated net present values or internal rates of return for an investment using…

A: Net present value and IRR are methods of evaluating the projects.

Q: 1- What are the payback and discounted payback methods? What are their main weaknesses? 2- What are…

A: As per out policy, I am answering first three sub-parts. Please repost the question by asking…

Q: In the evaluation of cash flows in a capital budgeting decision , which of the following must be…

A: The following are considered for the evaluation of cash flows in a capital budgeting decision.…

Q: Explain why the weighted average cost of capital (WACC) is used in capital budgeting.

A: WACC = multiplying the cost of each capital source (debt and equity) by its relevant weight by…

Q: Discuss how a project's risk can be incorporated into capital budgeting analysis.

A: Answer: Capital budgeting is a process to determine potential investment after evaluating the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.