Question 1

Capital-expenditure management involves which of the following?

Accepted Answer

A) Determining which expenditures can be capitalised for accounting purposes. 
B) The planning and control of expenditures incurred in the expectation of deriving future economic benefits in the form of cash inflows. 
C) The amount of expenditure required by a company so that they are exempt from capital gains tax. 
D) Planning the amount of a company's annual budget that will be spent on human capital. 
A) Determining which expenditures can be capitalised for accounting purposes. 
B) The planning and control of expenditures incurred in the expectation of deriving future economic benefits in the form of cash inflows. 
C) The amount of expenditure required by a company so that they are exempt from capital gains tax. 
D) Planning the amount of a company's annual budget that will be spent on human capital.

Question 2

Benefit-cost ratio is calculated by:

Accepted Answer

A) dividing the present value of future net cash flows by the initial outlay. 
B) dividing the present value of cash flows by the working capital. 
C) dividing the present value of future net cash flows by the sum of initial outlay and the working capital. 
D) dividing the total cash flows by the initial outflow. 
A) dividing the present value of future net cash flows by the initial outlay. 
B) dividing the present value of cash flows by the working capital. 
C) dividing the present value of future net cash flows by the sum of initial outlay and the working capital. 
D) dividing the total cash flows by the initial outflow.

Question 3

Net present value and internal rate of return always rank projects in the same order when conducting a project evaluation on mutually exclusive investments.

Accepted Answer

A) True 
 B)False

Question 4

A company is to evaluate the following mutually exclusive investment proposals.The required rate of return is 10%.  Calculate each proposal's net present value and internal rate of return.

Accepted Answer

The answer of A company is to evaluate the following...

Question 5

Which of the following statements in regard to the internal rate of return method is false?

Accepted Answer

A) A project may have multiple internal rates of return. 
B) It eliminates the need to calculate the required rate of return. 
C) Two sign reversals in the cash flow stream are a necessary condition for two internal rates of return. 
D) None of the given options. 
A) A project may have multiple internal rates of return. 
B) It eliminates the need to calculate the required rate of return. 
C) Two sign reversals in the cash flow stream are a necessary condition for two internal rates of return. 
D) None of the given options.

Capital-expenditure management involves which of the following?

Benefit-cost ratio is calculated by:

Net present value and internal rate of return always rank projects in the same order when conducting a project evaluation on mutually exclusive investments.

A company is to evaluate the following mutually exclusive investment proposals.The required rate of return is 10%. Calculate each proposal's net present value and internal rate of return.

Which of the following statements in regard to the internal rate of return method is false?

Introduction

Consumption, Investment and the Capital Market

The Time Value of Money: An Introduction to Financial Mathematics

Applying the Time Value of Money to Security Valuation

The Application of Project Evaluation Methods

Risk and Return

The Capital Market

Sources of Finance: Equity

Sources of Finance: Debt

Payout Policy

Principles of Capital Structure

Capital Structure Decisions

The Cost of Capital and Taxation Issues in Project Evaluation

Leasing and Other Equipment Finance

Capital Market Efficiency

Futures Contracts

Options and Contingent Claims

Analysis of Takeovers

International Financial Management

Management of Short-Term Assets: Inventory

Management of Short-Term Assets: Liquid Assets and Accounts Receivable

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Exam 5: Project Evaluation: Principles and Methods

Capital-expenditure management involves which of the following?

Benefit-cost ratio is calculated by:

Net present value and internal rate of return always rank projects in the same order when conducting a project evaluation on mutually exclusive investments.

A company is to evaluate the following mutually exclusive investment proposals.The required rate of return is 10%. Calculate each proposal's net present value and internal rate of return.

Which of the following statements in regard to the internal rate of return method is false?

Introduction

Consumption, Investment and the Capital Market

The Time Value of Money: An Introduction to Financial Mathematics

Applying the Time Value of Money to Security Valuation

The Application of Project Evaluation Methods

Risk and Return

The Capital Market

Sources of Finance: Equity

Sources of Finance: Debt

Payout Policy

Principles of Capital Structure

Capital Structure Decisions

The Cost of Capital and Taxation Issues in Project Evaluation

Leasing and Other Equipment Finance

Capital Market Efficiency

Futures Contracts

Options and Contingent Claims

Analysis of Takeovers

International Financial Management

Management of Short-Term Assets: Inventory

Management of Short-Term Assets: Liquid Assets and Accounts Receivable

Filters