Which of the following statement is   true?   O a. Sunk cost is not relevant in   capital budgeting decision   O b.   Capital budgeting decisions   are based on past       OC. Capital budgeting decisions are short term in nature   O d.   Capital Budgeting decisions   can be changed anytime

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 statements regarding capital budgeting analysis is correct?     NPV assumes…

A: Capital budgeting is the process of making investment decisions by a company in which different…

Q: Sophisticated capital budgeting techniques do not A. examine the size of the initial outlay. B.…

A: Capital budgeting techniques are used to understand the feasibility/acceptability of long term…

Q: True or False: In solving a classical capital budgeting problem using binary linear programming…

A: The question is based on the concept of linear programming problem  in decision making for long term…

Q: Time value of money as realistic in O a. None of the options O b. Working Capital O c. Simple…

A: Time value of money shows that money today is worth more than the same money in future.

Q: What is the main disadvantage of discountedpayback? Is the payback method of any realusefulness in…

A: The discounted payback method is a method of evaluating the payback period of the investment carried…

Q: Is capital budgeting decisions can be reversed

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

Q: Suppose a company uses the NPV method, alongwith risk-adjusted WACCs, to calculate projectNPVs.…

A: Companies find NPV to know the present worth of the project and on that basis, they decide to go for…

Q: . If a capital budgeting project’s cash flows are not normal, the internal rate of return (IRR)…

A: SOLUTION- INTERNAL RATE OF RETURN- IT IS A DISCOUNT RATE THAT MAKES THE NET PRESENT VALUE OF ALL…

Q: Capital budgeting would use which of the following costs: a. Budgeted costs – even though they would…

A: Following is the answer to the given question

Q: One of the following methods are not a method to evaluate projects: Return on investment Discounted…

A: Capital budgeting: It implies to the process of evaluating different projects based on their…

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: Option values are extinguished when they areexercised. How does this influence capital budgeting…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Describe the payback period approach to capital budgeting. Explain 1 advantage and 1 disadvantage of…

A: Pay back period is the length of time required to recover the cost of Investment. It is calculated…

Q: There are different methods utilized in making capital budgeting decisions. The one method that is…

A: The payback method is a capital budgeting technique that is used to determine the amount of time…

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: opportunity cost? Depreciation Given the choice, would a firm prefer to use MACRS depreciation or…

A: Depriciation:- Depreciation is an accounting method that is used to divide or allocate Cost of a…

Q: In a capital budgeting study, explain why sunk costs should not be included, but opportunity costs…

A:

Q: Which important function of management needs huge capital and have a long-term effect Select one: a.…

A: Management is an act or process of performing planning, organizing, staffing, directing, and…

Q: “Only quantitative outcomes are relevant in capital budgeting analyses.” Do you agree? E xplain.

A: “Only quantitative outcomes are relevant in capital budgeting analyses”. This statement is…

Q: For a capital investment project to be acceptable, it must generate a rate of return: O Less than…

A: Company raises money from the market through debt and equity and each one has cost related to that…

Q: When evaluating a potential capital budgeting decision, fixed asset expenditures O should be…

A: Capital budgeting is financial technique which helps in decision making on the basis of future cash…

Q: In the context of capital budgeting, what is meant by the word “discounting”?

A: The term 'discounting' in the context of capital budgeting refers to the process of determining the…

Q: Capital investment evaluation methods can be grouped into which of the foll ing a. Methods that use…

A: Captial investment evaluation methods are the methods to evaluated viability of long term project.…

Q: Which of the following is a problem associated with capital budgeting? Select all that apply.…

A: capital budgeting helps organizations make well-informed investment decisions, manage risks, and…

Q: Traditional NPV analysis usually does not address the decisions that managers have after a project…

A: Capital budgeting techniques are used to determine whether the investment is profitable or viable.…

Q: interest costs O No answer text provided. O externalities O opportunity costs

A: In the capital budgeting there is need to calculate the incremental cash flow and based on the…

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: I answered true but why answer say false please provide reason why

A: Part 2:Explanation:Step 1: Understand the role of depreciation in capital budgeting analysis.…

Q: xplain why sunk costs should be excluded from a capital budgeting study while opportunity costs and…

A: answer are as follows

Q: None

A: Option a: This option is  incorrect because time value of money is the expression of the value of…

Q: True or false:  The levels of fixed-cost assets and funds that management selects affect the…

A: In Funds management there are managers who manage the funds and based on their skills and talents…

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: Why might DCF techniques not lead to proper capital budgeting decisions?

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

Q: Ranking conflicts (or conflicts in project choice) can arise between IRR and NPV decision rules when…

A: IRR is the actual rate of return expected from the investment or project. Whereas the NPV means the…

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: The focus in capital budgeting is on   a. Favorable and unfavorable variance   b. Expenses under…

A: Capital budgeting :- It is process in which different long term investment proposal are evaluated…

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.