Question

T/F When computing the Net Present Value, cash savings and salvage received at the end of...

T/F

When computing the Net Present Value, cash savings and salvage received at the end of an investment project are both considered cash inflows.

In a decision to accept a special order at a special price, the sales persons’ commissions would not be relevant, however direct materials and direct labor would be relevant.

When computing the present value of $10,000 annual cost savings, you could not use the Present Value of an Annuity Table.

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Answer #1

Statement is TRUE - When computing the Net Present Value, cash savings and salvage received at the end of an investment project are both considered cash inflows.

statement is FALSE -In a decision to accept a special order at a special price, the sales persons’ commissions would not be relevant, however direct materials and direct labor would be relevant.

Statement is FALSE -When computing the present value of $10,000 annual cost savings, you could not use the Present Value of an Annuity Table.

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