In actual practice managers frequently use the

The stand-alone principle advocates that project analysis should be based solely on ___________ costs.
variable
fixed
sunk
total
incremental

Cooper Woodworking is considering two projects, both of which have an initial cost of $65,000 and total cash inflows of $80,000. The cash inflows of project A are $10,000, $15,000, $25,000, and $30,000 over the next four years, respectively. The cash inflows for project B are $30,000, $25,000, $15,000, and $10,000 over the next four years, respectively. Which one of the following statements is correct if Cooper requires a 10.5 percent rate of return and also has a required payback period of 4 years?
Both projects should be accepted.
Both projects should be rejected.
Project A should be accepted and project B should be rejected.
Project A should be rejected and project B should be accepted.
You should be indifferent to accepting either or both projects.

Harper Jones is evaluating an investment project will have an installed cost of $518,297. The cash flows over the 4-year life of the investment are projected to be $287,636, $203,496, $63,024 and $92,556, respectively. What is the NPV of this project if the discount rate is 6.5 percent?

$37,306
$55,318
$86,127
$128,415
$169,193

In actual practice, managers frequently use the:
I. average accounting return method because the information is so readily available
II. internal rate of return because the results are easy to communicate and understand
III. discounted payback because of its simplicity
IV. net present value because it is considered by many to be the best method of analysis
I and III only
II and III only
I, II, and IV only
II, III, and IV only
I, II, III, and IV

Forecasting risk emphasizes the point that the correctness of any decision to accept or reject a project is highly dependent upon the
Answer
ability to recoup any investment in net working capital.
method of analysis used to make the decision.
initial cash outflow.
length of the project.
accuracy of the projected cash flows.


The field of Organization Behavior doesn’t just look at the individual and the organization; it also looks at the ______________________.
Family
Group
Technology
Strategy
Business model

The Coffee Express has computed its fixed costs to be $0.425 for every cup of coffee it sells when operating at an annual sales level of 380,000 cups. The sales price is $2.19 per cup while the variable cost per cup is $0.89. How many cups of coffee must it sell to break-even on a cash basis?
83,814
107,667
124,231
129,480
161,500