consider the following statements about capital budgeting a 255436

Consider the following statements about capital budgeting.

a._____ is (are) more appropriate for long-term investments.

b._____ highlights risky investments.

c._____ shows the effect of the investment on the company’s accrual-based income.

d._____ is the interest rate that makes the NPV of an investment equal to zero.

e._____ In capital rationing decisions, management must identify the discount rate when the method is used.

f._____ provides management with information on how fast the cash invested will be recouped.

g._____ is the rate of return, using discounted cash flows, a company can expect to earn by investing in the asset.

h._____ does not consider the asset’s profitability.

i.______ uses accrual accounting rather than net cash inflows in its computation.


1. Fill in each statement with the appropriate capital budgeting method: Payback period, ROR, NPV, or IRR.

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