Which of the Following Is Not One of the Four

question 4

Multiple Choice

Which of the following is not one of the four elements of a capital expenditure decision about a single project?

• A)Estimated life and salvage value.
• B)Depreciation method.
• C)Initial outlay.
• D)Timing and amounts of operating cash flows.
• E)Cost of capital.

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Definitions:

Last Dividend

The most recent dividend payment made by a company to its shareholders.

Effective Annual Rate

The interest rate on an investment or loan that accounts for the effect of compounding over a given period.

Dividend

A dividend is a portion of a company's earnings that is paid to shareholders, usually on a regular basis.

Stock Price

The current price at which a share of a company's stock can be bought or sold in a financial market.