Question

Which of the following describes the need for capital budgeting? Select one: a. A company’s resources...

Which of the following describes the need for capital budgeting? Select one: a. A company’s resources are limited so that it will only choose between those projects that will deliver the highest wealth increase for the company. b. The company is aware of environmental issues and will only allocate to projects that are sustainable and for the good of the environment. c. The company should allocate to funds only to projects that produce a positive NPV as that will look good on any prospectus for potential new investors. d. The management of the company is against spending on projects at this time.

Homework Answers

Answer #1

The correct answer is option A.

Explanation:- The need for capital budgeting arises from the fact that resources such as capital, labor, material, supervisory expertise are available in limited quantity and the firm wants to make best use of these resources in order to maximize the firm's wealth. In the process of capital budgeting, a vast number of project alternatives are available and the firm must rank the alternatives in the order of increasing wealth. . A firm uses techniques such as net present value to evaluate the alternatives and then choose the alternative that has the highest net present value. An alternative with the highest net present value will maximize the firm's wealth.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Which one of the following would not be a part of the capital budgeting process? Select...
Which one of the following would not be a part of the capital budgeting process? Select one: a. Estimating the cash inflows/outflows of a potential new asset b. Determining how much debt should be used to purchase a new asset c. Conducting market research to determine demand for a modified product d. Projecting multiple years of sales growth to determine capacity (asset) constraints One of the most important goals of budgeting is: Select one: a. Determining the cash needs of...
Which of the following best describes a project management plan? The project charter, WBS, and project...
Which of the following best describes a project management plan? The project charter, WBS, and project scope statement The schedule, management plans, and budget A formal, approved document used to control the project The project manager's plan for managing and controlling the work The engineering department wants the project objective to be a 10 percent improvement in throughput. The information technology department wants no more than 5 percent of its resources to be used on the project. Management, who is...
Which of the following issues is NOT addressed in the Fair Labor Standards Act? a.racial discrimination...
Which of the following issues is NOT addressed in the Fair Labor Standards Act? a.racial discrimination b.child labor c.minimum wage d.overtime pay QUESTION 5 This reason for a difference in pay between a man and a woman is NOT a violation of the Equal Pay Act. a.A bona fide seniority systems b.The quality of job performance (i.e., merit-based pay systems) c.The quantity of output (i.e., piece-rate pay systems) d.Factors other than sex e.All of the reasons above are not a...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has...
Project Integration Management Questions Only A team member notifies you, after the fact, that she has added extra functionality to the project. There was no impact on the cost or schedule. What should be done as a result of this change? Make sure marketing is aware of the change. Implement change control processes to track the change. Inform the customer. Understand what functionality was added. You are having difficulty getting a project underway. You have not been able to get...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting...
CASE: Sharesies: NZ investment platform Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills,...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills, online shopping, coffees, vouchers, food,...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes...
Everyday investment company Sharesies was launched in February 2017, after conducting research on New Zealanders’ attitudes towards investing. Prior to launching the company, the co-founders interviewed over 200 people asking them “If I gave you $50 right now, and you had to do something with it in the next 5 minutes what would you do?” Only 5 out of 200 people chose an option to save or invest the $50. More popular options were bills, online shopping, coffees, vouchers, food,...
The Business Case for Agility “The battle is not always to the strongest, nor the race...
The Business Case for Agility “The battle is not always to the strongest, nor the race to the swiftest, but that’s the way to bet ’em!”  —C. Morgan Cofer In This Chapter This chapter discusses the business case for Agility, presenting six benefits for teams and the enterprise. It also describes a financial model that shows why incremental development works. Takeaways Agility is not just about the team. There are product-management, project-management, and technical issues beyond the team’s control. Lean-Agile provides...
Lebanon’s infrastructurewas extremelydamaged by the 1975-1990 civil war. The quality of public utilities decayedfurther after the...
Lebanon’s infrastructurewas extremelydamaged by the 1975-1990 civil war. The quality of public utilities decayedfurther after the war in 2006 and the Syrian war in 2011.Since then, Lebanonhas lacked sustainableelectricity, education, health, transport and other basic networksdue to the chronic inability of successive governments to manage and plan them.As a result, the growth of the economy has been severely constrained.The public company Electricite du Liban (EdL) weighs heavily on the government’s expenditures. Subsidies to EdL stood at an average of $1.85B...
CASE 3.2 Horizon Consulting Patti Smith looked up at the bright blue Carolina sky before she...
CASE 3.2 Horizon Consulting Patti Smith looked up at the bright blue Carolina sky before she entered the offices of Horizon Consulting. Today was Friday, which meant she needed to prepare for the weekly status report meeting. Horizon Consulting is a custom software development company that offers fully integrated mobile application services for iPhonetm, Androidtm, Windows Mobile® and BlackBerry® platforms. Horizon was founded by James Thrasher, a former marketing executive, who quickly saw the potential for digital marketing via smartphones....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT