Which of the following is a problem associated with capital budgeting? Select all that apply. Long-term strategic planning for resource allocation Unsustainable budget infrastructure that will have an impact on future generations Miscalculating or poor estimation of projected costs Fluctuating economics and financial markets

Which of the following is a problem associated with capital budgeting? Select all that apply. Long-term strategic planning for resource allocation Unsustainable budget infrastructure that will have an impact on future generations Miscalculating or poor estimation of projected costs Fluctuating economics and financial markets

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter16: Country Risk Analysis

Section: Chapter Questions

Problem 9QA

See similar textbooks

Similar questions

Distinguish among beta (or market) risk, within-firm (or corporate) risk, and stand-alone risk for a project being considered for inclusion in a firm’s capital budget.
Why are interest charges not deducted when a projects cash flows are calculated for use in a capital budgeting analysis?
Define each of the following terms: Project cash flow; accounting income Incremental cash flow; sunk cost; opportunity cost; externality; cannibalization; expansion project; replacement project Net operating working capital changes; salvage value Stand-alone risk; corporate (within-firm) risk; market (beta) risk Sensitivity analysis; scenario analysis; Monte Carlo simulation analysis Risk-adjusted discount rate; project cost of capital Decision tree; staged decision tree; decision node; branch Real options; managerial options; strategic options; embedded options Investment timing option; growth option; abandonment option; flexibility option
Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating losses
Which of the following is a problem with using discounted payback period for capital budgeting decisions arbitrary cutoff choice bias against short term projects in favor of long term projects time value of money conceptual violation
Which of the following is a problem with using payback period for capital budgeting decisions bias against long term projects in favor of short term projects bias against short term projects in favor of long term projects time value of money conceptual violation
Which of the following is not a capital budgeting technique? Select one: a. Net present value b. Discounted Payback period c. Payback Period d. Profitability index e. Ratio Analysis Which capital budgeting projects are preferred? Select one: a. Lower payback period b. None of the option c. Higher payback period d. Lower cash inflow projects e. Average payback period
Which of the following is NOT an advantage of the capital budget process? Cautious review of infrastructure projects to prevent mistakes Routine purchase of infrastructure assets Facilitate borrowing to finance all infrastructure projects Improve equity across generations