Question 1

The value of an investment at the end of the period over which interest is compounded is called the:

Accepted Answer

A)  time value of money. 
B)  present value of an investment. 
C)  future value of an investment. 
D)  None of the above. 
A)  time value of money. 
B)  present value of an investment. 
C)  future value of an investment. 
D)  None of the above.

Question 2

Cash flows should be converted to ________ amounts before applying the net present value,payback,or internal rate of return method to them.

Accepted Answer

The answer of Cash flows should be converted to ________...

Question 3

Explain the time-value-of-money concept.

Accepted Answer

Basically,a dollar i

Question 4

Since 1986,the only acceptable accelerated depreciation method is the ________.

Accepted Answer

Modified A

Question 5

What are the problems and advantages of managing by the numbers?

Accepted Answer

Financial analysis provides tools to obj

Question 6

The value of an investment at the end of the period over which interest is compounded is called the ________.

Accepted Answer

future val

Question 7

A(n)________ is a series of payments of a fixed amount for a specified number of years.

Accepted Answer

The answer of A(n)________ is a series of payments of...

Question 8

The present value of an investment is the amount that must be invested now to accumulate to a certain amount in the future at a specific interest rate.

Accepted Answer

A) True 
 B)False

Question 9

The ________ is used to evaluate projects by calculating the amount of time that will elapse before the total of after-tax cash flows will equal the initial investment.

Accepted Answer

The answer of The ________ is used to evaluate projects...

Question 10

The advantage of using the modified accelerated cost recovery system (MACRS)for depreciation is that it extends the lives of investments,giving a firm a longer period of time before the item must be replaced.

Accepted Answer

A) True 
 B)False

Question 11

Straight-line depreciation is an accelerated depreciation method.

Accepted Answer

A) True 
 B)False

Question 12

Depreciation

Accepted Answer

A)  is an allowance for the consumption of capital. 
B)  acts as a tax shield. 
C)  is not a legitimate cash flow. 
D)  All of the above. 
A)  is an allowance for the consumption of capital. 
B)  acts as a tax shield. 
C)  is not a legitimate cash flow. 
D)  All of the above.

Question 13

The value of an investment at the end of the period over which interest is compounded is called the future value of the investment.

Accepted Answer

A) True 
 B)False

Question 14

The ________ is the interest rate that is the lowest desired return on an investment.

Accepted Answer

The answer of The ________ is the interest rate that...

Question 15

An annuity is a series of payments of a fixed amount for a specified number of years.

Accepted Answer

A) True 
 B)False

Question 16

Depreciation is not a legitimate cash flow.

Accepted Answer

A) True 
 B)False

Question 17

The amount that must be invested now to accumulate to a certain amount in the future at a specified interest rate is called the ________.

Accepted Answer

present va

Question 18

The process by which interest on an investment accumulates and then earns interest itself for the remainder of the investment period is called ________.

Accepted Answer

compoundin

Question 19

The ________ method of calculating annual depreciation is the simplest,and usually is adequate for internal planning purposes.

Accepted Answer

The answer of The ________ method of calculating annual depreciation...

Question 20

Which method of analysis does not consider the time value of money?

Accepted Answer

A)  Net present value (NPV) 
B)  Internal rate of return (IRR) 
C)  Payback 
D)  None of the above; they all consider the time value of money. 
A)  Net present value (NPV) 
B)  Internal rate of return (IRR) 
C)  Payback 
D)  None of the above; they all consider the time value of money.

Exam 14: Financial Analysis

The value of an investment at the end of the period over which interest is compounded is called the:

Cash flows should be converted to ________ amounts before applying the net present value,payback,or internal rate of return method to them.

Explain the time-value-of-money concept.

Since 1986,the only acceptable accelerated depreciation method is the ________.

What are the problems and advantages of managing by the numbers?

The value of an investment at the end of the period over which interest is compounded is called the ________.

A(n)________ is a series of payments of a fixed amount for a specified number of years.

The present value of an investment is the amount that must be invested now to accumulate to a certain amount in the future at a specific interest rate.

The ________ is used to evaluate projects by calculating the amount of time that will elapse before the total of after-tax cash flows will equal the initial investment.

The advantage of using the modified accelerated cost recovery system (MACRS)for depreciation is that it extends the lives of investments,giving a firm a longer period of time before the item must be replaced.

Straight-line depreciation is an accelerated depreciation method.

Depreciation

The value of an investment at the end of the period over which interest is compounded is called the future value of the investment.

The ________ is the interest rate that is the lowest desired return on an investment.

An annuity is a series of payments of a fixed amount for a specified number of years.

Depreciation is not a legitimate cash flow.

The amount that must be invested now to accumulate to a certain amount in the future at a specified interest rate is called the ________.

The process by which interest on an investment accumulates and then earns interest itself for the remainder of the investment period is called ________.

The ________ method of calculating annual depreciation is the simplest,and usually is adequate for internal planning purposes.

Which method of analysis does not consider the time value of money?

Creating Customer Value through Operations

Supply Chain Management

Process Configuration

Capacity

Inventory Management

Quality and Process Improvement

Lean Systems

Managing Projects

Location and Layout

Managing Demand and Forecasting

Operations Planning and Scheduling

Resource Planning

Decision Making

Work Measurement

Learning Curve Analysis

Computer-Integrated Manufacturing

Acceptance Sampling Plans

Simulation

Special Inventory Models

Linear Programming

Waiting Lines

Filters