Companies often use several methods to evaluate the project’s cash flows and each of them has its benefits and disadvantages. based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? check all that apply. 1. managers have been slow to adopt the irr, because percentage returns are a harder concept for them to grasp

2. for most firms, the reinvestment rate assumption in the npv is more realistic than the assumption in the irr.

3. the discounted payback period improves on the regular payback period by accounting for the time value of money

true or false: sophisticated firms use only the npv method in capital budgeting decisions

true or false

Which analyst position analyzes information using mathematical models to business managers make decisions? -budget analyst -management analyst -credit analyst -operations research analyst

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. during 2003, an auction house sold a sculpture at auction for a price of $10,211,500. unfortunately for the previous owner, he had purchased it in 2000 at a price of $12,177,500. what was his annual rate of return on this sculpture? (a negative answer should be indicated by a minus sign. do not round intermediate calculations and enter your answer as

Asmall town wants to build some new recreational facilities. the proposed facilities include a swimming pool, recreation center, basketball court and baseball field. the town council wants to provide the facilities which will be used by the most people, but they face budget and land limitations. the town has $400,000 and 14 acres of land. the pool requires locker facilities which would be in the recreation center, so if the swimming pool is built the recreation center must also be built. also, the council has only enough flat land to build the basketball court or the baseball field. the daily usage and cost of the facilities (in $1,000) are shown below. which facilities should they build? facilityusagecost ($1,000)landswimming pool4001002recreation center5002003basketball court3001504baseball field2001005