TEST BANKS & SOLUTION MANUALS
LIST OF PRODUCTS
GUIDE
CONTACT US
Test Bank
Login / Register
0 items / $0.00
Menu
Test Bank testbank logo2
0 items / $0.00
  • Home
  • Health Professions
    • Nursing
    • Pharmacology/Surgical
    • Surgical Technology
    • Health and Disease
    • Blood Banking
    • Medical
    • Medicine
    • Emergency Care
    • Nutritional Care
    • Dental Materials
    • Cancer
    • Drug
  • Business & Management
    • Accounting
    • Marketing
    • Management
    • Statistics
    • Auditing
    • Business
    • Business Statistics
    • Banking
    • Financial
    • Financial Accounting
    • Personal Finance
    • Investment
    • Taxation of Business
  • Exams
    • Physical/Examination
  • Science & Technology
    • Biology
    • Chemistry
    • Biochemistry
    • Basic Chemistry
    • Environmental Science
    • Geography
    • Math
    • Psychology
    • Anatomy & Physiology
    • Astronomy
    • Information Technology
    • Microbiology/Biology
    • Neuropsychology
    • Pediatric Primary
    • Research Method
  • Engineering
    • Information Technology
    • Computing Technology
    • Data Analysis
    • Database
    • Web Design
    • Web Development
  • Humanities
    • Communication
    • Economics
    • Education
    • History
    • Sociology
    • Human Development
    • Human Physiology
    • Human Sexuality
    • Politics
    • Criminology
    • Criminal Justic
    • Art
    • Leadership
    • Learning
    • Legal Environment
    • Lifespan
    • Relationship
  • Blog
-29%
Introduction to Management Accounting 16th Edition by Horngren – Test Bank
Click to enlarge
Home » Shop » Introduction to Management Accounting 16th Edition by Horngren – Test Bank
Introduction To International Disaster Management 3rd Edition By Damon P. Coppola – Test Bank
Introduction To International Disaster Management 3rd Edition By Damon P. Coppola – Test Bank $35.00 Original price was: $35.00.$25.00Current price is: $25.00.
Back to products
Marine Biology 10th Edition By Castro Test Bank
Marine Biology 10th Edition By Castro -Test Bank $35.00 Original price was: $35.00.$25.00Current price is: $25.00.

Introduction to Management Accounting 16th Edition by Horngren – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.

This is not a Textbook. Please check the free sample before buying.

Edition: 16th Edition

Format: Downloadable ZIP Fille

Resource Type: Test bank

Duration: Unlimited downloads

Delivery: Instant Download

Add to wishlist
SKU: 3464564 Category: Management
Share:
  • Description
  • Reviews (0)
  • Instant Delivery By Mail
Description

INTRODUCTION TO MANAGEMENT ACCOUNTING 16TH EDITION By HORNGREN – TEST BANK

Chapter 11 Capital Budgeting

11.1 Questions

1) Investments of large amounts of cash in plant assets are called ________.
A) cash outflows
B) capital budgeting
C) capital projects
D) capital outlays
Answer: D
Diff: 1
LO: 11-1
AACSB: Reflective thinking skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

2) The most widely used capital budgeting models are ________.
A) payback method
B) accounting rate of return
C) return on investment
D) discounted cash flow methods
Answer: D
Diff: 1
LO: 11-1
AACSB: Reflective thinking skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

3) Which of the following statements is FALSE?
A) Discounted cash flow models focus on future cash inflows and outflows.
B) Discounted cash flow models consider the time value of money.
C) Discounted cash flow models focus on net income.
D) Discounted cash flow models compare cash outflows today to the present value of future cash flows.
Answer: C
Diff: 1
LO: 11-1
AACSB: Reflective thinking skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

4) Steps used in applying the net present value method to a proposed capital investment do NOT include ________.
A) identify the amount and timing of relevant expected cash inflows and outflows
B) find the present value of each expected future cash inflow and outflow
C) find the sum of the present values of each expected future cash inflow and outflow
D) find the future value of the cash outflow that occurs at the present time.
Answer: D
Diff: 1
LO: 11-1
AACSB: Reflective thinking skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

5) Which of the following statements is FALSE?
A) The higher the minimum desired rate of return, the lower the present value of each future cash flow.
B) Higher required rates of return lead to lower net present values for capital investments.
C) Higher required rates of return lead to higher net present values for capital investments.
D) The net present value for a project can be negative or positive depending on the minimum desired rate of return used.
Answer: C
Diff: 1
LO: 11-1
AACSB: Reflective thinking skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

6) When using the Net Present Value model, which of the following assumptions is/are used?
A) We assume the predicted cash inflows and outflows are certain to occur at the times specified.
B) We assume perfect capital markets.
C) The Net Present Value model meets the cost-benefit criterion.
D) A and B
Answer: D
Diff: 1
LO: 11-1
AACSB: Reflective thinking skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

7) A capital investment has a net present value of $1,000.00 at a required rate of return of 10%. At a 12% required rate of return, the net present value of the investment is $100.00. At a 14% required rate of return, the net present value of the investment is $0. The capital investment should be rejected if ________.
A) the required rate of return exceeds 14%
B) the required rate of return exceeds 12%
C) the required rate of return is less than 14%
D) the required rate of return is less than 12%
Answer: A
Diff: 2
LO: 11-1
AACSB: Analytic skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

8) Dolly Madison Company is considering two investments. The relevant data follows:

Project A Project B
Cost $200,000 $300,000
Annual cash savings(end of year) $50,692 $60,995
Terminal salvage value $50,000 $70,000
Estimated useful life in years 5 5
Minimum desired rate of return 10% 10%
Method of depreciation Straight-line Straight-line

Present Value Present Value
Of $1 of Ordinary
for 5 periods Annuity of $1
for 5 periods
5% 0.7835 4.3295
6% 0.7473 4.2124
7% 0.713 4.1002
8% 0.6806 3.9927
10% 0.6209 3.7908
12% 0.5674 3.6048
14% 0.5194 3.4331

Ignoring taxes, the internal rate of return for Project A is approximately ________.
A) 8%
B) 10%
C) 12%
D) 14%
Answer: D
Diff: 2
LO: 11-1
AACSB: Analytic skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

9) New Jersey Company is considering two investments. The relevant data follows:

Project A Project B
Cost $200,000 $300,000
Annual cash savings (end of year) $50,692 $60,995
Terminal salvage value $50,000 $70,000
Estimated useful life in years 5 5
Minimum desired rate of return 10% 10%
Method of depreciation Straight-line Straight-line

Present Value Present Value
Of $1 of Ordinary
for 5 periods Annuity of $1
for 5 periods
5% 0.7835 4.3295
6% 0.7473 4.2124
7% 0.713 4.1002
8% 0.6806 3.9927
10% 0.6209 3.7908
12% 0.5674 3.6048
14% 0.5194 3.4331

Ignoring taxes, the internal rate of return for Project B is approximately ________.
A) 6%
B) 7%
C) 8%
D) 10%
Answer: B
Diff: 2
LO: 11-1
AACSB: Analytic skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

10) New Hampshire Company is considering two investments. The relevant data follows:

Project A Project B
Cost $200,000 $300,000
Annual cash savings(end of year) $50,692 $60,995
Terminal salvage value $50,000 $70,000
Estimated useful life in years 5 5
Minimum desired rate of return 10% 10%
Method of depreciation Straight-line Straight-line

Present Value Present Value
Of $1 of Ordinary
for 5 periods Annuity of $1
for 5 periods
5% 0.7835 4.3295
6% 0.7473 4.2124
7% 0.713 4.1002
8% 0.6806 3.9927
10% 0.6209 3.7908
12% 0.5674 3.6048
14% 0.5194 3.4331

Ignore taxes. Using the net present value method, which project should be accepted?
A) Project A only
B) Project B only
C) both Project A and Project B
D) neither Project A nor Project B
Answer: A
Diff: 2
LO: 11-1
AACSB: Analytic skills
Learning Outcome: Calculate the NPV, internal rate of return, payback period, and accounting rate of return and use to evaluate a potential investment; Discuss the basics of capital investments and illustrate the time value of money concepts

Reviews (0)

Reviews

There are no reviews yet.

Be the first to review “Introduction to Management Accounting 16th Edition by Horngren – Test Bank” Cancel reply

Your email address will not be published. Required fields are marked *

Instant Delivery By Mail

Related products

-29%
An Introduction To Derivatives And Risk Management 10th Edition By Don M. – Test Bank
Quick view
Add to wishlist
Add to cart

An Introduction To Derivatives And Risk Management 10th Edition By Don M. – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Canadian Entrepreneurship And Small Business Management 9th Edition By Peter – Test Bank
Quick view
Add to wishlist
Add to cart

Canadian Entrepreneurship And Small Business Management 9th Edition By Peter – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Human Resource Management 9th Edition By Gary Dessler – Test Bank
Quick view
Add to wishlist
Add to cart

Human Resource Management 9th Edition By Gary Dessler – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Government In America People Politics And Policy 16th Edition By George C. Edwards – Test Bank
Quick view
Add to wishlist
Add to cart

Government In America People Politics And Policy 16th Edition By George C. Edwards – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Business Marketing Management B2B 11th Edition By Michael D. Hutt – Test Bank
Quick view
Add to wishlist
Add to cart

Business Marketing Management B2B 11th Edition By Michael D. Hutt – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Hospitality Facilities Management And Design 4th Edition By David M. Stipanuk – Test Bank
Quick view
Add to wishlist
Add to cart

Hospitality Facilities Management And Design 4th Edition By David M. Stipanuk – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Foundations Of Operations Management Canadian 4th Edition By Ritzman Test Bank
Quick view
Add to wishlist
Add to cart

Foundations Of Operations Management Canadian 4th Edition By Ritzman – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
-29%
Food Service Organizations A Managerial And Systems Approach 8th Edition By Gregoire – Test Bank
Quick view
Add to wishlist
Add to cart

Food Service Organizations A Managerial And Systems Approach 8th Edition By Gregoire – Test Bank

$35.00 Original price was: $35.00.$25.00Current price is: $25.00.
Test Bank
  • 3277 S WHITE RD SAN JOSE, CA 95148
  • Phone: (064) 332-1233
  • admin@testbank.ltd
MAIN
  • Home
  • Blog
  • Guide
  • FAQs
  • Contact us
  • Account
Categories
  • Test Banks & Solutions
  • List of Products
  • Nursing Test Bank
  • Accounting Test Bank
  • Exams Test Bank
  • Surgical Test Bank
NEED HELP?
  • Privacy Policy
  • Refund & Returns
  • Terms And Conditions
  • Shipping Policy
  • Billing Term Conditions
  • Submit your Request
NEW REQUEST

We have the biggest collection of authentic Test Banks with many more being uploaded every day so if you can’t find your desired Test Bank or Solution Manual then please Submit Request and we will send it to your inbox.

Test Bank 2023 All Right Reserved
payments
  • Home
  • Health Professions
    • Nursing
    • Pharmacology/Surgical
    • Surgical Technology
    • Health and Disease
    • Blood Banking
    • Medical
    • Medicine
    • Emergency Care
    • Nutritional Care
    • Dental Materials
    • Cancer
    • Drug
  • Business & Management
    • Accounting
    • Marketing
    • Management
    • Statistics
    • Auditing
    • Business
    • Business Statistics
    • Banking
    • Financial
    • Financial Accounting
    • Personal Finance
    • Investment
    • Taxation of Business
  • Exams
    • Physical/Examination
  • Science & Technology
    • Biology
    • Chemistry
    • Biochemistry
    • Basic Chemistry
    • Environmental Science
    • Geography
    • Math
    • Psychology
    • Anatomy & Physiology
    • Astronomy
    • Information Technology
    • Microbiology/Biology
    • Neuropsychology
    • Pediatric Primary
    • Research Method
  • Engineering
    • Information Technology
    • Computing Technology
    • Data Analysis
    • Database
    • Web Design
    • Web Development
  • Humanities
    • Communication
    • Economics
    • Education
    • History
    • Sociology
    • Human Development
    • Human Physiology
    • Human Sexuality
    • Politics
    • Criminology
    • Criminal Justic
    • Art
    • Leadership
    • Learning
    • Legal Environment
    • Lifespan
    • Relationship
  • Blog
  • Wishlist
  • Login / Register
Shopping cart
close

Sign in

close

Lost your password?

No account yet?

Create an Account
Start typing to see products you are looking for.
Shop
Wishlist
0 items Cart
My account