MENU
The capital budgeting model that is ordinarily considered the best model for long-range decision making is the
Suggested Answer: D
Get Premium CMA Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
The capital budgeting methods that are generally considered the best for long-range decision making are the internal rate of return and net present value methods. These are both discounted cash flow methods
12 comments · newest first
GL
Glory
11 months ago
The DCF model really gives a clearer picture of value!
EU
Eun
12 months ago
Wait, are we sure D is the best? Seems too simple.
MA
Marguerita
12 months ago
Totally agree, D is the way to go for long-term!
TU
Tu
12 months ago
I thought the Payback model was more popular?
NI
Nina
1 year ago
Definitely the Discounted cash flow model!
KA
Kaycee
1 year ago
I feel like the unadjusted rate of return model is less reliable for long-range planning, but I can’t recall the specifics.
GW
Gwen
1 year ago
I remember practicing a question similar to this, and I think the payback model is more about short-term returns, right?
HY
Hyun
1 year ago
I think the discounted cash flow model is the best for long-term decisions, but I’m not entirely sure why it’s preferred over the others.
PH
Phillip
1 year ago
I’m leaning towards the discounted cash flow model too, but I keep mixing it up with the accounting rate of return model.
JU
Junita
1 year ago
Okay, I think I've got this. The key is that the customer is adding a new logical enclosure based on 5 frames, but they already have 6 logical enclosures spanning 18 frames. So the question is whether they can just add the new enclosure, or if they need to expand the management ring capacity. I'll carefully consider the answer choices.
GE
Geoffrey
1 year ago
I'm pretty sure the Cycle Variance Detail Print program is the one we need to run to compare the system quantities to the actual physical counts.
JE
Jesusa
1 year ago
I'm a bit confused by the wording of the question. Is it asking about the most commonly applied principle, or the one that's specifically relevant to the service modeling process? I'll have to re-read it carefully.