Which of following accounting transactions would cause changes in cash flows resulting from a replacement project?
A. the interest payment for a bank loan, which is to finance the investment
B. depreciate the new equipment that is the most important part of the investment project
C. gains and losses from the sale of old equipment.
D. the loss resulting from giving up other alternative investment projects
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Which of followings investment rulesboth recognize the time value of money and consider cash flows over the entire useful life of an investment?
A. NPV
B. IRR
C. PI
D. Payback period
The most important guideline is to consider a firm's total cash flows that will result from a firm's undertaking a project.
A. 对
B. 错
Cash flow and accounting profit are not necessarily the same due to the presence of certain non-cash items on the firm's income statement.
A. 对
B. 错
The firm should allocate the existing overhead into a new investmentproject's cash flows in the capital budgeting analysis,even when the firm's current overhead remains unchanged by accepting the project.
A. 对
B. 错