Table 10 -1. Capital Budgeting Choices

question 54

Multiple Choice

Table 10 -1. Capital Budgeting Choices

-Refer to Table 10 -1. Glen Write owns an engineering firm. He asked his employees for suggestions regarding equipment they thought the firm would need during the next year. They suggested the purchase of eight pieces of equipment. Glen calculated the net present value of each recommendation. Glenn has a policy of purchasing only one item per year. Which alternative to capital budgeting is Glen using?

• A) positive NPV
• B) capital rationing
• C) mutually exclusive
• D) non -mutually exclusive

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Definitions:

Refined Grain

Grain products that have been processed to remove the bran and germ, leaving behind the endosperm, often resulting in a loss of nutrients.

Complex Carbohydrates

Carbohydrates consisting of long chains of sugar molecules, found in foods such as grains, vegetables, and legumes, providing sustained energy.

Lacteal

A lymphatic capillary located in the villi of the small intestine, responsible for absorbing dietary fats and transporting them to the circulatory system.

Epithelial Cell

Cells that line the surfaces of the body including skin, organs, and cavities, acting as a protective barrier.