Capital budgeting includes the evaluation of which of the following

Asked by admin @ 07/10/2021 in Business viewed by 356 People

Capital budgeting includes the evaluation of which of the following?A. Size of future cash flows onlyB. Size and timing of future cash flows onlyC. Timing and risk of future cash flows onlyD. Risk and size of future cash flows onlyE. Size, timing, and risk of future cash flows

Answered by admin @ 07/10/2021

Answer:

The answer is E. Size, timing, and risk of future cash flows

Explanation:

- In capital budgeting, both size, timing and risk of future cash flows are of importance in evaluating an investment/projects 's profitability.

- For size of the future cash flow: it is important because it is necessary to estimate how much cash flow incremental an investment/project may bring about.

- For timing of the cash flow: because money has time value, that is one dollar today is not worth the same as one dollar next month, timing of cash flow needs to be projected so that the net present value of the project can be calculated accurately.

- For risk of future cash flows: It is used to decide the required rate of return of an investment/project. The higher the risk, the higher the required rate of return an investment has to generate.

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2742 persons

Capital budgeting includes the evaluation of which of the following

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