ACC 206 Principles of Accounting II Week 5 Video Quiz Chapter 8 Answers
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<strong>ACC</strong> <strong>206</strong> <strong>Principles</strong> <strong>of</strong> <strong>Accounting</strong> <strong>II</strong><br />
<strong>Week</strong> 5 <strong>Video</strong> <strong>Quiz</strong> <strong>Chapter</strong> 8<br />
<strong>Answers</strong><br />
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<strong>ACC</strong> <strong>206</strong> <strong>Week</strong> 5 <strong>Video</strong> <strong>Quiz</strong> <strong>Chapter</strong> 8 <strong>Answers</strong><br />
1. Capital budgeting encompasses only machinery and equipment purchases for a firm. (Points : 1)<br />
Question 2. 2. Time value <strong>of</strong> money calculations are not a deal breaker (major factor) in a capital budgeting<br />
decision typically. (Points : 1)<br />
Question 3. 3. The payback method <strong>of</strong> evaluating a long term investment does not take into consideration the<br />
time value <strong>of</strong> money. (Points : 1)<br />
Question 4. 4. The higher the discount rate the less likely an investment will have a positive NPV. (Points : 1)<br />
Question 5. 5. The internal rate <strong>of</strong> return must be above 6% to make an investment worthwhile. (Points : 1)
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