5. In a general sense, cash flow can be said to equal A. Operating income minus...

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5. In a general sense, "cash flow" can be said to equal A. Operating income minus taxes plus depreciation B. Operating income minus taxes C. Operating income before depreciation and taxes plus depreciation D. Operating income after taxes minus depreciation 6. Which of the following statements about the Payback method is true? A. The Payback method considers cash flows after the payback has been reached B. The Payback method does not consider the time value of money C. The Payback method uses discounted cash-flow techniques D. The Payback method generally leads to the same decision as other investment selection methods 7. Assuming that a company has no capital rationing constraint and that a company's investment alternatives are not mutually exclusive, the company should accept all investment proposals A. For which it can obtain financing B. That have a positive net present value C. That have positive cash flows D. That provide returns greater than the after-tax cost of debt 8. If an investment project has a positive net present value, then the internal rate of return is A. Less than the cost of capital B. Greater than the cost of capital C. Equal to the cost of capital D. Indeterminate, because it depends on the length of the project 5. In a general sense, "cash flow" can be said to equal A. Operating income minus taxes plus depreciation B. Operating income minus taxes C. Operating income before depreciation and taxes plus depreciation D. Operating income after taxes minus depreciation 6. Which of the following statements about the Payback method is true? A. The Payback method considers cash flows after the payback has been reached B. The Payback method does not consider the time value of money C. The Payback method uses discounted cash-flow techniques D. The Payback method generally leads to the same decision as other investment selection methods 7. Assuming that a company has no capital rationing constraint and that a company's investment alternatives are not mutually exclusive, the company should accept all investment proposals A. For which it can obtain financing B. That have a positive net present value C. That have positive cash flows D. That provide returns greater than the after-tax cost of debt 8. If an investment project has a positive net present value, then the internal rate of return is A. Less than the cost of capital B. Greater than the cost of capital C. Equal to the cost of capital D. Indeterminate, because it depends on the length of the project

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Q5 Answer is A Operating income minus taxes plus depreciation Explanation To compute ... View the full answer