Capital budgeting decisions are generally based on:


29. Capital budgeting decisions are generally based on: O Tentative predictions of future outcomes. O Perfect predictions of future outcomes. O Results from past outcomes only O Results from current outcomes only O Speculation of interest rates and economic performance only
The calculation of the payback period for an investment when net cash flow is even (equal) is: O Cost of investment/Annual net cash flow O Cost of investment/Total net cash flow O Annual net cash flow/Cost of investment Total net cash flow/Cost of investment Total net cash flow/Annual net cash flow

Answer

solution: 29. Capital budgeting decisions are generally based on: Tentative predictions of future outcomes. (In capital budgeting decision, we try to estimate future outcomes which are unreliable and which can never be perfect) The calculation of the payback period for an investment when net cash flow is even (equal) is Cost of investment/Annual net cash flow

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