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:

Hiring Practices

Refers to the methods and procedures used by organizations to recruit and hire new employees.

Feeler

An individual who relies more on intuition and emotions when making decisions or interacting with others.

Thinking Type

Describes an individual's preferred method or style of thinking, often categorized by cognitive functions in psychological typologies.

Human Value Orientation

A perspective that prioritizes human values, ethics, and well-being in decisions and actions.