Podcast
Questions and Answers
What is a critical factor in investment decisions due to the scale and long-term nature of the consequences?
What is a critical factor in investment decisions due to the scale and long-term nature of the consequences?
- Estimates of demand
- Inflation
- The investor's attitude to risk (correct)
- Taxation
What is the primary goal of the accountant in investment and project appraisal?
What is the primary goal of the accountant in investment and project appraisal?
- To analyse the data using only one appraisal technique
- To present the senior management team with the results
- To make the investment decisions
- To gather the essential data from various sources (correct)
What is the accounting rate of return method used for?
What is the accounting rate of return method used for?
- To calculate the payback period
- To estimate the yearly cash flows
- To determine the initial cash outflow
- To compare investment and project appraisal (correct)
What is the usual decision rule when using the payback method?
What is the usual decision rule when using the payback method?
What is included in the initial cash outflow when using investment and project appraisal methods?
What is included in the initial cash outflow when using investment and project appraisal methods?
What is the profit referred to in investment and project appraisal?
What is the profit referred to in investment and project appraisal?
What is the primary difference between investment appraisal decisions and short-term decision making?
What is the primary difference between investment appraisal decisions and short-term decision making?
What is a key concept in investment and project appraisal techniques that arises from the longer time period involved?
What is a key concept in investment and project appraisal techniques that arises from the longer time period involved?
What is one of the situations where investment and project appraisal may be used?
What is one of the situations where investment and project appraisal may be used?
What is a factor that influences an organisation's decision to invest?
What is a factor that influences an organisation's decision to invest?
What is an alternative financing option that an organisation may consider?
What is an alternative financing option that an organisation may consider?
What is a key consideration in investment appraisal decisions?
What is a key consideration in investment appraisal decisions?
