B B. MULTIPLE CHOICE QUESTIONS For each question, enter the letter of the best response on the blank preceding the question A 16. Each of the following phrases could be used to describe a capital expenditure" EXCEPT A a capital expenditure is an outlay made for the earning assets of the firm. B. a capital expenditure is expected to produce benefits over a period of time greater than one year C. a capital expenditure is an outlay for "Current Asset" expansion (i.e., perhaps for an increase in "Inventory" or "Accounts Receivable"). D. a capital expenditure is commonly used to expand the level of the firm's operations 12. Projects that compete with one another, so that the acceptance of one project eliminates the other projects from further consideration are called A independent projects B. mutually exclusive projects C. replacement projects. D none of the above c_18. The ordering of capital expenditure projects on the basis of some predetermined measure, such as the rate of return," is called A the ranking approach B. the independent investment approach C. the accept - reject approach D. a mutually exclusive investment approach. E 19. Each of the following is a weakness of the payback period method EXCEPT A the payback period disregards the cash flows that occur after the payback period B. the payback period does not explicitly consider the time value of money C. it is difficult to identify the appropriate maximum acceptable payback period D. the payback period uses cash flows, rather than accounting profits