1. Which of the following is a method of capital budgeting used to
potential investment screen? A. book rate of return B. acid test ratio C. return on assets D. debt to equity ratio 2. Cash inflows include future cash income generated by a
investment and any future residual value of the asset, but excludes
any future cash operating expense savings resulting from
the investment. True or false
Answer 1
The answer is
A. Accounting rate of return
It is a capital budgeting technique used to assess
investments. The rest is only proportions
2.False, cost savings are also included in cash inflows