1. When using the net present value method to evaluate capital spending on a new project, the discount rate is:

A. The markup percentage on merchandise if the business is a merchandising business.

B. Management's required rate of return on the specific project.

C. The rate of return on net sales.

D. the gross margin percentage if the business is a merchandising busines.

31. Which of the following is one of the operating budgets?

A. selling and adminstrative budgets.

B. cash budget

C. capital expendiure budget

D. budgeted balance sheet