1) Capital investments do not typically require large sums of money.
2) The process of making capital investment decisions is referred to as capital budgeting.
3) Self-check-in machines at airports are an example of capital assets.
4) Capital budgeting is done when common stock is issued.
5) Choosing among alternative capital investments is called a post-audit.
6) Post-audits of capital investments compare actual net cash inflows to projected net cash inflows.
7) The costs to develop a major website for a company would be considered to be a capital asset if those costs are significant and material (for example, the costs to develop the website exceed $100,000).
8) The cost associated with renovating a warehouse to be used as a restaurant would be considered a capital asset.
9) The health care insurance cost of a company for its assembly-line workers would not be considered to be a capital asset.
10) The following are all methods of analyzing capital investments except
A) Payback Period.
B) Regression Analysis.
C) Net Present Value (NPV).
D) Accounting Rate of Return (ARR).
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