10 Which of the following statements is false concerning capital budgeting? The simple rate of...
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Accounting
10 Which of the following statements is false concerning capital budgeting? The simple rate of return is relatively straightforward to compute, but ignores the time value of money. As it relates to capital expenditure decisions, cost of capital is the opportunity cost of capital required for the proposed investment None of the other answer choices are correct. The two main non-discounted cash flow techniques used in capital budgeting are net present value (NPV) and cost-volume- profit (CVP). Under the payback method to evaluate investments, we compute how long it takes to recoup the initial investment
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