Question: MULTIPLE CHOICE. Choose the one alternative that best answer the question 4) which of the following is true? A NPV method accounts for time value
MULTIPLE CHOICE. Choose the one alternative that best answer the question 4) which of the following is true? A NPV method accounts for time value of money while Benefit-cost ratio method does not B. Simple rute of return is trote capital budgeting decision method CIRR method accounts for time value of money D. Payback period method accounts for time value of money 5)George William buys a machine for his business. The muchine has initial investment of $80.575. George estimates that the machine can produce $40,000 cash inflow per year for the next 3 years Considering interest (or cost of capital) at 10 percentate, what is the approximate net present value? A)840575 B) $39 425 C) 580,575 D)518,900 6) George William buys a machine for his business. The machine costs $150,000. George estimates that the machine can produce 540,000 cash intlow per year for the next five years, George's cost of capital is 10 percent. What is the payback for this investment? A 4 years B) 5 years C)3 years D) 9 years MULTIPLE CHOICE. Choose the one alternative that best answers the question 4) which of the following is true? A. NPV method accounts for time value of money while Benefit-cost ratio method does not B. Simple rate of return is not a capital budgeting decision method. C. IRR method accounts for time value of money. D. Payback period method accounts for time value of money, 5) George William buys a machine for his business. The machine has initial investment of $50,575. George estimates that the machine can produce $40,000 cash inflow per year for the next 3 years. Considering interest (or cost of capital) at 10 percent rate, what is the approximate net present value? A) $40,575 B) 539425 $80,575 D) $18.900 6) George William buys a machine for his business. The machine costs $150,000. George estimates that the machine can produce $40,000 cash inflow per year for the next five years. George's cost of capital is 10 percent. What is the payback for this investment? A) 4 years C) 3 years D) 9 years B) 5 years
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