BUSI 320 Learnsmart Assignment Chapter 12 Liberty University Complete Answer
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The company's tax rate is 35%. The company's tax shield benefits due to incremental depreciation for year 1 is $____.
Under the payback method, the investment that ____ is the one selected.
The net present profile is a way to ____ portray the net present value of a project at different discount rates.
Under capital rationing, a project will be deemed unacceptable if
All of the following are advantages of the payback method except
MACRS classifies assets into _____ categories to determine the allowable rate of depreciation.
A replacement decision can involve several additions to the basic investment decision. What are the additions to be considered?
A company purchases new equipment costing $200,000 that provides an annual cost saving of $25,000. The company's tax rate is 35%. The company's annual after-tax savings is $______.
The reinvestment assumption of the net present value assumes that all inflows can be reinvested at the
Using MACRS, what is the total amount of depreciation for an automobile that cost the company $25,000 and has a residual/salvage value of $5,000?
Net present value is the preferred investment selection method because it
The firm is considering the replacement of an old machine that has a current market value of $20,000 and a book value of $15,000 with a new machine that has a purchase price of $100,000. The firm's tax rate is 35%. The net cost of the new machine is $
Based on the table below, which investment alternative(s) will the firm choose if their cost of capital is 12%?
The curves of Investment A and Investment B cross one another at 10%. If Investment A's curve falls below investment B's curve prior to the crossover point, which investment is superior at discount rates less than 10% (A or B) ?
Which capital budgeting method makes the conservative assumption that each inflow can be reinvested at the discount rate?
Maximum, Inc. is considering a new six-year expansion project that requires an initial fixed asset investment of $100,000. The fixed assets will be depreciated using the 5-year MACRS class. The project is estimated to generate $150,000 in annual sales, with the costs of $80,000. If the tax rate is 35% and the company uses a discount rate of 10%, what is the present value of the cash flows in year 2?
The firm has 2 investment opportunities to choose from, A or B. The cash inflows for each investment of $50,000 is provided in the table below. Using the payback method the firm should choose investment (A or B)?
Which of the following rates are required when applying the net present value profile.
In a mutually exclusive investment decisions the firm will choose the investment that has the highest
If the NPV for an investment is equal to zero, the firm will
Net present value is the sum of the ________ values of all cash outflows and inflows related to a project.
Match the capital budgeting method with the correct definition
In order, what are the steps required in the decision making process of a good capital budgeting program
What are the methods used to evaluate capital expenditures?
Capital budgeting decisions emphasize flows.
Based on the information provided in the table below, what is the net present value of the investment with a discount rate of 10%?
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