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Finance Applications and Theory Study Set 3

Business

Quiz 12 :

Estimating Cash Flows on Capital Budgeting Projects

Quiz 12 :

Estimating Cash Flows on Capital Budgeting Projects

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With regard to depreciation, the time value of money concept tells us that
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B

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For which situation below would one need to "smooth out" the variation in each set of cash flows so that each becomes a perpetuity?
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C

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Which of the following is the IRS convention that requires that all property placed in service during a given period is assumed to be placed in service at the midpoint of that period?
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D

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When calculating operating cash flow for a project, one would calculate it as being mathematically equal to which of the following?
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Accelerated depreciation allows firms to
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The best approach to convert an infinite series of asset purchases into a perpetuity is known as the
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Which of these is used as a measure of the total amount of available cash flow from a project?
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As new capital budgeting projects arise, we must estimate
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Effects that arise from a new product or service that decrease sales of the firm's existing products or services are referred to as
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Concerning incremental project cash flow, which of these is a cost one would never count as an expense of the project?
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A decrease in net working capital (NWC) is treated as a
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If a firm has already paid an expense or is obligated to pay one in the future, regardless of whether a particular project is undertaken, that expense is a
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Effects that arise from a new product or service that increase sales of the firm's existing products or services are referred to as
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Which of the following measures the operating cash flow a project produces minus the necessary investment in operating capital, and is as valid for proposed new projects as it is for the firm's current operations?
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Which of these is the process of estimating expected future cash flows of a project using only the relevant parts of the balance sheet and income statements?
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When looking at which of these types of projects, one must consider any cash flows that arise from surrendering old equipment before the end of its useful life?
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Which of these is the concept that a unit's sales will follow an approximate bell-shaped curve versus a steady sales life?
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Which of the following is NOT included when calculating the depreciable basis for real property?
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One way to account for flotation costs of raising capital is to
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Section 179 allows a business, with certain restrictions, to do which of the following?
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