Multiple Choice $(15$ points$)\_\_\_\_\_1)\_\_\_\_\_\_\_\_$ is the process of evaluating and selecting long$-$term investments consistent with the firm's goal of owner wealth maximization. A$)$ Recapitalizing assets B$)$ Capital budgeting C$)$ Ratio analysis D$)$ Restructuring debt $\_\_\_\_\_2)$ Fixed assets that provide the basis for the firm's profit and value are often called A$)$ tangible assets. B$)$ non$-$current assets. C$)$ earning assets. D$)$ book assets. $\_\_\_\_\_3)$ The most common motive for adding fixed assets to the firm is A$)$ expansion. B$)$ replacement. C$)$ renewal. D$)$ transformation. $\_\_\_\_\_4)$ The final step in the capital budgeting process is A$)$ implementation. B$)$ follow$-$up$.$ C$)$ re$-$evaluation. D$)$ education. $\_\_\_\_\_5)$ The first step in the capital budgeting process is A$)$ review and analysis. B$)$ implementation. C$)$ decision$-$making. D$)$ proposal generation. $\_\_\_\_\_6)$ A $$60,000$ outlay for a new machine with a usable life of $15$ years is called A$)$ capital expenditure. B$)$ operating expenditure. C$)$ replacement expenditure. D$)$ none of the above. $1\_\_\_\_\_7)$ A capital expenditure is all of the following EXCEPT A$)$ an outlay made for the earning assets of the firm. B$)$ expected to produce benefits over a period of time greater than one year. C$)$ an outlay for current asset expansion. D$)$ commonly used to expand the level of operations. $\_\_\_\_\_8)$ All of the following are motives for capital budgeting expenditures EXCEPT A$)$ expansion. B$)$ replacement. C$)$ renewal. D$)$ invention. $\_\_\_\_\_9)$ All of the following are steps in the capital budgeting process EXCEPT A$)$ implementation. B$)$ follow$-$up$.$ C$)$ transformation. D$)$ decision$-$making. $\_\_\_\_\_10)\_\_\_\_\_\_\_\_$ projects do not compete with each other; the acceptance of one $\_\_\_\_\_\_\_\_$ the others from consideration. A$)$ Capital; eliminates B$)$ Independent; does not eliminate C$)$ Mutually exclusive; eliminates D$)$ Replacement; does not eliminate $\_\_\_\_\_11)\_\_\_\_\_\_\_\_$ projects have the same function; the acceptance of one $\_\_\_\_\_\_\_\_$ the others from consideration. A$)$ Capital; eliminates B$)$ Independent; does not eliminate C$)$ Mutually exclusive; eliminates D$)$ Replacement; does not eliminate $\_\_\_\_\_12)$ A firm with limited dollars available for capital expenditures is subject to A$)$ capital dependency. B$)$ mutually exclusive projects. C$)$ working capital constraints. D$)$ capital rationing. $\_\_\_\_\_13)$ A conventional cash flow pattern associated with capital investment projects consists of an initial A$)$ outflow followed by a broken cash series. B$)$ inflow followed by a broken series. C$)$ outflow followed by a series of inflows. D$)$ inflow followed by a series of outflows. $\_\_\_\_\_14)$ A non$-$conventional cash flow pattern associated with capital investment projects consists of an initial A$)$ outflow followed by a series of both cash inflows and outflows. B$)$ inflow followed by a series of both cash inflows and outflows. C$)$ outflow followed by a series of inflows. D$)$ inflow followed by a series of outflows. $2\_\_\_\_\_15)\_\_\_\_\_\_\_\_$ is a series of equal annual cash flows. A$)$ A mixed stream B$)$ A conventional C$)$ A non$-$conventional D$)$ An annuity