Which of the Following Statements Regarding Capital Investment Analysis Is

question 12

Multiple Choice

Which of the following statements regarding capital investment analysis is false?

• A) A long-term planning horizon is assumed.
• B) Benefits of potential investment projects are conceptually expressed in terms of accounting income (or reduction in costs) rather than after-tax cash flows.
• C) Project acceptance decisions are based partially on the extent to which these projects and expenditures support the strategy of the organization.
• D) Need to incorporate income-tax effects in the analysis, for both revenues (and gains) as well as expenses (and losses).
• E) Discounted cash flow (DCF) decision models are used by most large organizations.

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Definitions:

Foreign Intelligence Surveillance Act Court

A federal court established to oversee requests for surveillance warrants against foreign spies inside the United States by federal law enforcement and intelligence agencies.

FISA Court

Refers to the Foreign Intelligence Surveillance Court, a U.S. federal court established to oversee requests for surveillance warrants against foreign spies inside the United States.

Sneak And Peek

Refers to a law enforcement tactic of secretly searching a property without immediately notifying the target of the search.

Agency

A legal relationship in which an agent acts under the direction of a principal for the principal’s benefit. Also used to refer to government regulatory bodies of all kinds.