1 capital investments do not typically require large sums of money 2 the process of 4307964

 

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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