4199984
Pregunta 1
Pregunta
''Capital budgeting'' decisions, which involve the acquisition of (choose 3)
Respuesta
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land
-
food
-
cars
-
air
-
buildings
-
equipment
Pregunta 2
Pregunta
Capital budgeting decisions, which involve the acquisition of land, buildings, and equipment, are among the most important decisions made by healthcare managers.
Respuesta
- True
- False
Pregunta 3
Pregunta
Capital budgeting
Respuesta
-
often involve large sums of money
-
often involve small sums of money
Pregunta 4
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Second, they typically are costly to
Respuesta
-
reverse and extend over long periods of time.
-
reverse and intend over long periods of time.
Pregunta 5
Pregunta
Finally, they define the ____ direction of the business.
Respuesta
-
Finally, they define the strategic direction of the business.
-
Finally, they define the dull direction of the business.
Pregunta 6
Pregunta
proposed capital budgeting projects are ____ according to purpose and size
Respuesta
-
roposed capital budgeting projects are classified according to purpose and size
-
roposed capital budgeting projects are unclassified according to purpose and size
Pregunta 7
Pregunta
proposed capital budgeting projects are classified according to ___ and ___
Respuesta
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purpose and assets
-
purpose and size
Pregunta 8
Pregunta
for example (choose 2)
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expansion of existing services
-
expansion into no services
-
expansion into new services
Pregunta 9
Pregunta
investor-owned businesses, projects that are expected to ______ to shareholder wealth
Respuesta
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not contribute
-
contribute
Pregunta 10
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not-for-profit businesses, identifies a project’s expected ____ on the business’s financial condition
Respuesta
-
effect
-
stigma
Pregunta 11
Pregunta
financial analysis: estimate the cash flows
initial cash outlay (cost)
Operating flows
Terminal (ending) flow
Respuesta
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estimate the cash non flow
-
estimate the cash flow
Pregunta 12
Pregunta
initial cash outlay (___)
Operating flows
Terminal (ending) flow
Respuesta
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oraganization
-
cash
Pregunta 13
Pregunta
Initial cash outlay (cost)
Operating flows
Terminal (___) flow
Respuesta
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continous
-
ending
Pregunta 14
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financial analysis assess the project's
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cost
-
riskiness
Pregunta 15
Pregunta
Estimate the project cost of capital (opportunity cost of capital or discount rate)
Respuesta
- True
- False
Pregunta 16
Pregunta
Estimate the project cost of capital (____ ____ of capital or discount rate)
Respuesta
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discount cost
-
opportunity cost
Pregunta 17
Pregunta
Estimate the project cost of capital (opportunity cost of capital or ___ ___)
Respuesta
-
discount rate
-
expenses rate
Pregunta 18
Pregunta
financial analysis measures the ___ ___
Respuesta
-
financial effort
-
financial impact
Pregunta 19
Pregunta
Key Concepts in Cash Flow Estimation
Focus on cash flow as opposed to accounting income
Respuesta
- True
- False
Pregunta 20
Pregunta
Key Concepts in Cash Flow Estimation
Focus on __ __ as opposed to accounting income
Respuesta
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old flow
-
cash flow
Pregunta 21
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Cash flow timing
-Usually cash flows occur daily
-Often approximated by annual flows
Respuesta
- True
- False
Pregunta 22
Pregunta
Cash flow timing
-Usually cash flows occur ______
-Often approximated by annual flows
Respuesta
-
every 1 year
-
daily
Pregunta 23
Pregunta
Cash flow timing
-Usually cash flows occur daily
-Often approximated by ___ flows
Respuesta
-
Cash flow timing -Usually cash flows occur daily -Often approximated by annual flows
-
Cash flow timing -Usually cash flows occur daily -Often approximated by semi-annual flows
Pregunta 24
Pregunta
Project life
-Often unknown
-Often truncated if long (terminal value)
Respuesta
- True
- False
Pregunta 25
Pregunta
Project life
-Often ____
-Often truncated if long (terminal value)
Respuesta
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known
-
unknown
Pregunta 26
Pregunta
Key Concepts in Cash Flow Estimation
-Do not include sunk costs
-Do include opportunity costs:
For capital
For other resources
Respuesta
- True
- False
Pregunta 27
Pregunta
Key Concepts in Cash Flow Estimation
- ____________________________
-Do include opportunity costs:
For capital
For other resources
Respuesta
-
does includes sunk costs
-
does not include sunk cost
Pregunta 28
Pregunta
Key Concepts in Cash Flow Estimation
-Do not include sunk costs
-Do include _________:
For capital
For other resources
Respuesta
-
opportunity costs
-
business costs
Pregunta 29
Pregunta
Inflation effects must be considered
Any strategic value implications must be considered
Respuesta
- True
- False
Pregunta 30
Pregunta
what 2 things must be considered?
Respuesta
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deflation effects
-
inflation effects
-
non strategic value
-
strategic value
Pregunta 31
Pregunta
investment at t = 0 ( _ _ _ ) s
Respuesta
-
123
-
000
Pregunta 32
Pregunta
Investment at t = 0 (000s)
Respuesta
- True
- False
Pregunta 33
Pregunta
note that these cash flows are estimates
Respuesta
-
estimates
-
not estimates
Pregunta 34
Pregunta
If this were a replacement rather than a new (expansion) project, would the analysis change?
The relevant operating cash flows would be the same between the cash flows on the new and old project.
Respuesta
- True
- False
Pregunta 35
Pregunta
If this were a replacement rather than a new (expansion) project, would the analysis change?
The relevant operating cash flows would be ___ ___ between the cash flows on the new and old project.
Respuesta
-
the same
-
very different
Pregunta 36
Pregunta
However, selling the old equipment would produce an immediate cash inflow, but the salvage value at the end of its original life is foregone
Respuesta
-
cash inflow
-
cash outflow
Pregunta 37
Pregunta
There are many different approaches to breakeven in project analysis:
Time breakeven
Input variable breakeven
Respuesta
- True
- False
Pregunta 38
Pregunta
There are many different approaches to breakeven in project analysis:
Time breakeven
___ variable breakeven
Respuesta
-
input
-
output
Pregunta 39
Pregunta
There are many different approaches to breakeven in project analysis:
___ breakeven
Input variable breakeven
Respuesta
-
quality
-
time
Pregunta 40
Pregunta
time breakeven, which is measured by payback (or payback period).
Respuesta
- True
- False
Pregunta 41
Pregunta
time breakeven, which is measured by ---------- (or --------- period).
Respuesta
-
outback
-
payback
Pregunta 42
Pregunta
Advantages of Payback:
1. Easy to calculate and understand.
Provides an indication of a project’s risk and liquidity.
Disadvantages of Payback:
1. Ignores time value.
2. Ignores all cash flows that occur after the payback period.
Respuesta
- True
- False
Pregunta 43
Pregunta
Advantages of Payback:
1. ____ to calculate and understand.
Provides an indication of a project’s risk and ___
Disadvantages of Payback:
1. Ignores time value.
2. Ignores all cash flows that occur after the payback period.
Respuesta
-
hard, liquidity
-
easy, liquidity
Pregunta 44
Pregunta
Advantages of Payback:
1. Easy to calculate and understand.
Provides an indication of a project’s risk and liquidity.
Disadvantages of Payback:
1. Ignores ____ ___.
2. Ignores all cash flows that occur after the payback period.
Respuesta
-
time value
-
project risk
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