In Addition to Offering Information and Analysis,________ Can Also Include

question 8

Multiple Choice

In addition to offering information and analysis,________ can also include recommendations.

• A)indirect reports
• B)analytical reports
• C)informational reports
• D)directive reports
• E)direct reports

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Definitions:

IOS

Investment opportunity schedule. A schedule of capital budgeting projects arranged in decreasing order of IRR.

WACC

Weighted Average Cost of Capital; it represents a firm's blended cost of capital across all sources, including both debt and equity.

MCC Schedule

Marginal cost of capital schedule. A plot of the WACC (weighted average cost of capital) against the total amount of capital to be raised in a planning period. The MCC rises as more capital is raised and the costs of individual components experience step function increases.

Capital Spending

Refers to funds spent by a business or government on acquiring or maintaining physical assets such as property, plants, and equipment.