FIN111 Final Exam Prep

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FIN111 Final Exam Prep Question and Answers 1. The purchase of additional physical facilities such as additional property or a new factory is an example of a capital expenditure Answer: true 2. If... a firm has unlimited funds to invest all the mutually exclusive projects that meet its minimum investment criteria can be implemented Answer: False 3. The first step in the capital budgeting process is___ Answer: proposal generation 4. Unsophisticated capital budgeting techniques do not ___ Answer: explicitly consider the time value of money 5. A firm is evaluating a proposal, which has an initial investment of 50,000 and has cash flows of 15000 per year for 5 years. The payback period of the project is Answer: 3.3 years [Show More]

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