Question 1 5 pts <span>Which of the following techniques may not consider ALL ca

Question

Question 1 5 pts <span>Which of the following techniques may not consider ALL cash flows of a project?</span> Which of the following techniques may not consider ALL cash flows of a project? Payback period Modified internal rate of return Net present value Internal rate of return

Question 2 5 pts Skip to question text. ABC will purchase a machine that will cost $2,575,000. Required modifications will cost $375,000. ABC will need to invest $75,000 for additional inventory. The machine has an IRS approved useful life of 7 years; it is presumed to have no salvage value. ABC plans to depreciate the machine by using the straight-line method. The machine is expected to increase ABC

Explanation / Answer

1 Payback period

2 $1,029,811

3 $42,000

4 Market study expenses incurred in order to decide if a firm should accept a project.

5 The cost of issuing new bonds if the project is financed by a new bond issue

6 All of the above

7 $32,000

8 All of the above should be included.

9 an opportunity cost

10 False

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