Acciounting help needed

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Business Finance

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Consider the following statements about capital budgeting. a. _______ is (are) more appropriate for long-term investments. b. _______ highlights risky investments. c. _______ shows the effect of the investment on the company's accrual-based income. d. _______ is the interest rate that makes the NPV of an investment equal to zero. e. In capital rationing decisions, management must identify the discount rate when the _______ method is used. f. _______ provides management with information on how fast the cash invested will be recouped. g. _______ is the rate of return, using discounted cash flows, a company can expect to earn by investing in the asset. h. _______ does not consider the asset's profitability. i. _______ uses accrual accounting rather than net cash inflows in its computation. Requirement: 1. Fill in each statement with the appropriate capital budgeting method: Payback period, ROR, NPV, or IRR. ____ method is used. couped. by investing in the asset. OR, NPV, or IRR. Water Planet is considering purchasing a water park in Atlanta, Georgia, for $1,870,000. The new facility will generate ann estimate that the facility will remain useful for eight years and have no residual value. The company uses straight-line depr 10% on investments of this nature. Requirements: 1. Compute the payback period, the ROR, the NPV, the IRR, and the profitability index of this investment. 2. Recommend whether the company should invest in this project. e new facility will generate annual net cash inflows of $460,000 for eight years. Engineers ompany uses straight-line depreciation, and its stockholders demand an annual return of s investment.
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I was having a hard time with this subject, and this was a great help.

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