Quiz 9

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

2. Match each of the following terms with the appropriate definition. The time expected to recover the cash initially invested in a project. A minimum acceptable rate of return on a potential investment. 1. Discounting A return on investment which results in a zero net present value. 2. Net Present Value A comparison of the cost of 3. Capital Budgeting an investment to its projected cash flows at a single point in time. 4. Accounting Rate of Return 5. Net Cash Flow A capital budgeting method focused on the rate of return on a project's average investment. 6. Internal Rate of Return 7. Payback Period The process of restating future cash flows in terms 8. Hurdle Rate of present time value. Cash inflows minus cash outflows for the period. A process of analyzing alternative long-term investments. >

of 31 Which type of budget requires a facility manager to perform an in-depth analysis of all line items and meticulously justify all expenditures? Operational budget Capital budget Zero-based budget Incremental budget

1. Concepts used in cash flow estimation and risk analysis You can come across different situations in your life where the concepts from capital budgeting will help you in evaluating the situation and making calculated decisions. Consider the following situation: The following table contains five definitions or concepts. Identify the term that best corresponds to the concept or definition given. Concept or Definition Term The specific cash flows that should be considered in a capital budgeting decision      A cost that has been incurred and may be related to a project but should not be part of the decision to accept or reject a project      The cash flows that the asset or project is expected to generate over its life      The effects on other parts of the firm      The cost of not choosing another mutually exclusive project by accepting a particular project        A successful sushi chain in Hong Kong spent $500,000 to conduct a study on whether to open…

1. Which of the following is NOT an objective of the budgeting process? a. O a. To communicate management's plans throughout the entire organization O D.To provide a means of allocating resources to those parts of the organization where they can be used most effectively С. To ensure that the company continues to grow OTo uncover potential bottlenecks before they occur

Zero-based budgeting refers to: a. Budgeting from the ground up as though the budget process were being initiated for the first time b. Using prior year’s budget as a bas year and adjusting it based on the experiences of the prior year and the expectations for the coming year c. Budgeting for cash inflows and outflows to time investments and borrowings in a way to maintain bank account with a minimum balance d. Developing budgeted costs from clear-cut measured relationships between inputs and outputs Clear my choice

What is the second step of capital budgeting? a. Gathering the money for the investment b. Identifying potential projects c. Getting the accountant involved d. All of the above

In your own words, Define the following terms they relate to spending budgeted dollars obligated amount pipeline obligation burn rate

The traditional line-item budget results in which of the following benefits?   Appropriations are flexible to allow for the achievement of desired outcomes.   Accountability and responsibility are easily assigned.   The long timeframe allows for decision-making and planning.   Costs of defined activities are identified.

Use the table for questions 18 and 19 below. Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Cash Elow. Cash Elow Cash Flow Cash Cash Elow Discount Project Flow Rate A -78 20 40 60 .105 B -86 37 24 24 46 105 Question 18 The NPV of project A is closest to: a) 16.0 b) 34.6 c) 39.3 d) 41.6 Answer. Question 19 The NPV of project B is closest to: a) 33.3 b) 43.3 c) 44.6 d) 54.3

Explain how cash flows are esrimated for captial budgeting. What are sunk costs and opportunity costs, and how should they be handled in identifying the projects relevant cash flows?

Cash budget is the most important of all the functional budget because; cash is required for the purpose to meeting its current cash obligations. Select one:TrueFalse

4.-To budget the customer balance in the projected balance sheet, two procedures can be followed that are hidden in the answers, which are? A) Opening balance plus credit sales for the budgeted period minus collections made. B) Apply current turnover to the budgeted period. C) Perform an aging analysis of customer balances. D) Project sales and outstanding balances for the last "n" years. E) Perform an actuarial calculation. Note:You can choose more than one option.

4.-To budget the customer balance in the projected balance sheet, two procedures can be followed that are hidden in the answers, which are? A) Opening balance plus credit sales for the budgeted period minus collections made. B) Apply current turnover to the budgeted period. C) Perform an aging analysis of customer balances. D) Project sales and outstanding balances for the last "n" years. E) Perform an actuarial calculation. Note:You can choose more than one option. Please double check your answer.

Title Multiple choice Description 1. The net present value (NPV) capital budgeting decision method: can be directly compared between alternatives incorporates the time value of money in the calculations is based on accounting net income indicates an acceptable capital project with a negative value     2. On a capital project, a net present value of ($250): indicates the capital project s rate of return exceeds the company s cost of capital for one project is considered superior to another project with a net present value of $500 indicates the internal rate of return would be unacceptable indicates cash outflows total $250 for the capital project     3. A 13% internal rate of return (IRR) on a capital project indicates all of the following except: the actual rate of return of all cash inflows and outflows that a 13% discount rate will result in the calculation of a net present value of zero a better indication of acceptable capital projects when there is limited capital than the…

Which of the following is/are true for the average accounting return method of project analysis? I. does not need a cutoff rate II. ignores time value of money II. is based on project's cash flows IV. easily obtainable information for computation Multiple Choice I only I, II, II, and IV