63 Which of the following capital budgeting techniques recognizes noncash revenues andexpenses? *O payback periodnet present valueO probability indexO accounting rate of return

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

Answered: Which of the following capital…

Which of the following capital budgeting techniques recognizes noncash revenues and expenses? * payback period net present value probability index accounting rate of return

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...

See similar textbooks

Related questions

Q: The IRR method and NPV method can differ in ranking of capital budgeting decisions. What causes…

A: The NPV is the difference between the present value of the cash inflow and the initial investment…

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: What are the advantages of using the NPV method of assessing capital budgeting projects over the Pay…

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: Based upon this information, Budget Wings' current weighted average cost of capital (WACC) is…

A: WACC: It represents the company's average cost of capital and is computed by the sum of the…

Q: Identify two simplifying assumptions associated with discounted cash flow methods of making capital…

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

Q: sion in capital budgeting?

A: A decision related to the investment in the long-term assets is known as the capital budgeting…

Q: Describe the strengths and weeknesses of the following:: Cash payback period Adverage accounting…

A: As you have given multiple questions, first 3 will be answered. Please re-post the question for…

Q: Which of the following is NOT a capital component when calculating the weighted average cost of…

A: WACC (discount rate) refers to the joint cost of company's capital from all the sources of the…

Q: Describe the six primary capital budgetingdecision criteria. What are their pros andcons, and how…

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,…

Q: How does the payback period approach capital budgeting? Examples of 1 advantage and 1 disadvantage?

A: Pay back period approch in capital budgeting is use to analysis two or more projects. The project…

Q: Defining capital investments and the capital budgeting process Match each definition with its…

A: Capital Budgeting: The method of planning and analyzing the viability of long term investments…

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: importance of the Technique

A: Capital budgeting refers to the process undertaken by the business for evaluating the projects or…

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: Please write at least three well composed paragraphs that describe the following capital budgeting…

A: Capital budgeting is defined as the process used to determine whether capital assets are worth…

Q: Discuss the payback period, NPV (net present value), and IRR (internal rate of return) methods for…

A: Capital budgeting is the process of comparing the project's return to the needed return. It aids in…

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 how a gain or loss on disposal is handled in a capital-budgeting analysis.

A: Capital budgeting: Capital budgeting is a process by which the management can plan and evaluate the…

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: 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: 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: . If the company’s capital budgeting analyst decidedto show all projected cash flows, both positive…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: Define each of the following terms:a. Capital budgeting; payback period; discounted payback period

A: Capital Budgeting is a decision making process in which company requires to evaluate long-term…

Q: Which of the following best describes the process of capital budgeting? a Forecasting revenues and…

A: Capital budgeting: It is the method in which an organization tries to estimate possible significant…

Q: B. What are the strength and weaknesses of each of the following capital budgeting technique below?…

A: Capital budgeting techniques are used for assessing the net benefits from projects and the value…

Q: What are the various costs that must be evaluated in a capital budgetingdecision?

A: Capital budgeting is the process of planning to make a decision to invest in long period investments…

Q: Explain Capital Budgeting? Mention the decision-making process of all capital budgeting techniques.

A: Capital budgeting refers to the process of making investment decisions in capital expenditure.…

Q: In capital budgeting decisions, the profitability index and internal rate of return methods will…

A: IRR is the discount rate at which NPV of project is zero. In other words is rate which present value…

Q: What is capital expenditure?

A: Expenditure means the amount spent on anything which is done for the purpose of business . It can be…

Q: how to Calculate and use the major capital budgeting decision criteria, which are NPV, IRR, MIRR,…

A: Capital budgeting entails selecting projects that add value to a business. The capital budgeting…

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: Explain the decision-making criteria in Capital Budgeting with the satiable example.

A: Capital budgeting is the process that a business uses to determine whether proposed fixed asset…

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: capital

A: Capital budgeting is estimating the level of the firm's profitability on its future projects. Future…

Q: When considering the discount rate to use for discounting cash flows of a company project, we should…

A: Most common sources of finance are debt and equity.

Q: Which of the following is a present value method of analyzing capital investment proposals? Uaverage…

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: pes of risk that are relevant in capital budgeting. How is each of these risk ty

A: Step 1 A capital budget is a financial tool for estimating long-term project value. When trying to…

Q: Which of the following capital budgeting methods is biased against long-term projects such as…

A: The question is related to Capital Budgeting. The pay back period is the length of time required to…

Question

Which of the following capital budgeting techniques recognizes noncash revenues and
expenses? *
O payback period
net present value
O probability index
O accounting rate of return

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Which of the following discounts future cash flows to their present value at the expected rate of return, and compares that to the Initial Investment? A. internal rate of return (IRR) method B. net present value (N PV) C. discounted cash flow model D. future value method
Which capital budgeting technique defines returns in terms of income instead of cash flows? a) The payback period b) The internal rate of return technique c) The net present value technique d) The unadjusted rate of return method
What is the most commonly used capital budgeting procedures? Select one: a. IRR b. Payback period c. Discounted Payback period d. NPV e. Profitability Index
Which capital budgeting technique measures all expected future cash inflows and outflows as if they occurred at a single point in time? Group of answer choices a. sensitivity analysis b. accrual accounting rate-of-return method c. net present value method d. payback method
Question:Describe Capital budgeting techniques with their respective strength and weakness for IRR , NPV , PI and Pay back period
Question: Which of the following methods of capital budgeting accounts for the time value of money? Options: A) Net Present Value (NPV) B) Payback Period C) Accounting Rate of Return (ARR) D) Profitability Index (PI)
Generally, which of the following measurements is considered the best single criterion in capital budgeting decisions? a. WACC b. Internal rate of return c. Payback d. Net present value
The following are discounting techniques in capital budgeting, except? discounted payback accounting rate of return present value index modified internal rate of return
Which of the following methods of capital budgeting indicates the time period required to recover the investment? a. Internal rate of return b. Accounting Rate of return c. Payback period d. Net present value
Which capital investment methods require the use of a present value table? Payback and net present value Internal rate of return and net present value Payback and internal rate of return Accounting rate of return and internal rate of return Accounting rate of return and net present value
How is a profitability index figured as it relates to capital budgeting and annuities?
Compare capital budgeting decision criteria, Net Present Value (NPV) and Internal Rateof Return (IRR).b. Is it possible for conflicts to exist between the NPV and the IRR when mutually exclusiveprojects are being evaluated? Explain.