Exam (elaborations)
ACG 2071 Chapter 26 questions and answers
- Course
- Institution
ACG 2071 Chapter 26 questions and answers
[Show more]
Content preview
ACG2071
Chapter
26
Capital
budgeting
process
-
ANS->develop
strategies
>plan
>act
>controll
Capital
budgeting
process:
develop
strategies
-
ANS-Develop
long-term
goals
Capital
budgeting
process:
plan
-
ANS->identify
potential
capital
investments
>analyze
potential
capital
investments
>apply
capital
rationing
Capital
budgeting
process:
act
-
ANS-Acquire
and
use
approved
capital
investments
Capital
budgeting
process:
controll
-
ANS-Perform
post-audits
>intermediate
>end-of-useful-life
Methods
of
analyzing
potential
capital
investments
-
ANS->payback
>accounting
rate
of
return
(ARR)
>net
present
value
(NPV)
>internal
rate
of
return
(IRR)
Methods
that
Consider
time
value
of
money
-
ANS->net
present
value
(NVP)
>internal
rate
of
return
(IRR)
Methods
that
dose
not
use
time
value
of
money
-
ANS->payback
>accounting
rate
of
return
(ARR)
capital
investment
cash
flow:
cash
inflow
-
ANS->revenue
generated
from
investment
>savings
in
operating
costs
>residual
value
capital
investment
cash
flow:
cash
outflow
-
ANS->initial
investment/
initial
outflow
(acquisition
cost)
>additional
operating
costs
>refurbishment,
repairs,
and
maintenance
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AnswersCOM. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73314 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now