Which of the following statements about investment decision models is true?
参考答案(由小熊题库网聘请的专业题库老师提供的解答)
请点击↑↑↑ 查看官方参考答案 按钮
习题解析
请点击 查看官方参考答案 按钮
您可能感兴趣的题目
1 .Egan Co. owns land that could be developed in the future. Egan estimates it can sell the land for USD1,200,000, net of all selling costs. If it is not sold, Egan will continue with its plans to develop the land. As Egan evaluates its options for development or sale of the property, what type of cost would the potential selling price represent in Egan's decision?
A Future. B Opportunity. C Variable. D Sunk.
2 .The Moore Corporation is considering the acquisition of a new machine. The machine can be purchased for USD90,000; it will cost USD6,000 to transport to Moore's plant and USD9,000 to install. It is estimated that the machine will last 10 years, and it is expected to have an estimated salvage value of USD5,000. Over its 10-year life, the machine is expected to produce 2,000 units per year with a selling price of USD500 and combined material and labor costs of USD450 per unit. Federal tax regulations permit machines of this type to be depreciated using the straight-line method over 5 years with no consideration for salvage value. Moore has a marginal tax rate of 40 percent.What is the net cash outflow at the beginning of the first year that Moore Corporation should use in a capital budgeting analysis?
A USD(96,000) B USD(85,000) C USD(105,000) D USD(90,000)
3 .Net present value as used in investment decision-making is stated in terms of which of the following options?
A Earnings before interest and taxes. B Cash flow. C Net income. D Earnings before interest, taxes, and depreciation.
4 .If the net present value of a capital budgeting project is positive, it would indicate that the:
A Present value index would be less than 100 percent. B Internal rate of return is equal to the discount percentage rate used in the net present value computation. C Rate of return for this project is greater than the discount percentage rate used in the net present value computation. D Present valu...
5 .Vee Corp. retained Walter, CPA, to prepare its Year 6 income tax return. During the engagement, Walter discovered that Vee had failed to file its Year 2 income tax return. What is Walter's professional responsibility regarding Vee's unfiled Year 2 income tax return?
A Advise Vee that the Year 2 income tax return has not been filed and recommend that Vee ignore filing its Year 2 return since the statute of limitations has passed. B Advise the IRS that Vee's Year 2 income tax return has not been filed. C Consider withdrawing from preparation of Vee's Year 6 incom...
7 .A penalty for understated corporate tax liability can be imposed on a tax preparer who fails to:
A Copy all underlying documents. B Examine business operations. C Audit the corporate records. D Make reasonable inquiries when taxpayer information appears incorrect.
8 .In evaluating a capital budget project, the use of the net present value model is generally not affected by the:
A Amount of added working capital needed for operations during the term of the project. B Initial cost of the project. C Amount of the project's associated depreciation tax allowance. D Method of funding the project.
9 .Clark, a professional tax return preparer, prepared and signed a client's federal income tax return that resulted in a USD600 refund. Which one of the following statements is correct with regard to an Internal Revenue Code penalty Clark may be subject to for endorsing and cashing the client's refund check?
A Clark will be subject to the penalty if Clark endorses and cashes the check. B Clark may endorse and cash the check, without penalty, if Clark is enrolled to practice before the Internal Revenue Service. C Clark may not endorse and cash the check, without penalty, because the check is for more tha...
10 .In evaluating costs for decision-making, a company would always consider each of the following as relevant,except:
A Variable costs. B Avoidable costs. C Incremental costs. D Differential costs.
