Capital budgeting analyses typically assume a constant cost of capital, even though the analysts know it will change. One reason for this practice is that
A) the changes are too small to affect the decision.
B) a constant cost of capital is the most conservative assumption.
C) the changes are unpredictable.
D) NPV calculations do not allow more than one discount rate.
Answer: C
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Which of the following is true of a buyer's right of inspection?
A) Cost of inspection is shared by the seller and buyer if goods are conforming. B) Cost of inspection can be recovered from the seller if goods are nonconforming. C) Goods can only be inspected before shipment is made by the seller. D) Inspection has to be performed after the goods in the contract have been accepted.
Increasing the discount period on accounts receivable will increase an organization's cash levels
Indicate whether the statement is true or false