Chapter 8
Long-Term (Capital Investment) Decisions
Multiple Choice
1. (LO 1—NPV)
2. (LO 1—NPV)
3. (LO 1 and 2—NPV and IRR)
4. (LO 1 and 2—NPV and IRR)
5. (LO 2—NPV assumptions)
6. (LO 2—IRR assumption)
7. (LO 3—Screening decisions)
8. (LO 3—Profitability index)
Solutions Manual
MC8 – 2
9. (LO 3—Preference decisions)
10. (LO 6—Tax savings from depreciation)
11. (LO 4—After-tax rate of return)
12. (LO 5—Payback period)
13. (LO 7—Payback period)
Answer: C