1. When using the net present value method to evaluate capital spending on a new project, the discount rate is:
A. The markup percentage on merchandise if the business is a merchandising business.
B. Management's required rate of return on the specific project.
C. The rate of return on net sales.
D. the gross margin percentage if the business is a merchandising busines.
2. Which of the following is one of the operating budgets?
A. selling and adminstrative budgets.
B. cash budget
C. capital expendiure budget
D. budgeted balance sheet