A project has the following cash flows.What is the payback period? \[\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\ \hline 0 & - \$ 14,500 \\ \hline 1 & 2,200 \\ \hline 2 & 4,800 \\ \hline 3 & 6,500 \\ \hline 4 & 7,600 \\ \hline \end{array}\]

A) 3.04 years B) 2.59 years C) 2.96 years D) 3.13 years E) 3.24 years A) 3.04 years B) 2.59 years C) 2.96 years D) 3.13 years E) 3.24 years

A project has the following cash flows.What is the internal rate of return? \[\begin{array} { | c | r | } \hline \text { Year } & \text { Cash Flow } \\ \hline 0 & - \$ 33,800 \\ \hline 1 & 12,360 \\ \hline 2 & 14,680 \\ \hline 3 & 16,710 \\ \hline \end{array}\]

A) 13.23 percent B) 13.58 percent C) 12.96percent D) 13.67 percent E) 13.10 percent A) 13.23 percent B) 13.58 percent C) 12.96percent D) 13.67 percent E) 13.10 percent

Exam 8: Net Present Value and Other Investment Criteria

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An investment has an initial cost of $462,000 and will generate the net income amounts shown below.This investment will be depreciated straight-line to zero over the four-year life of the project.Should this project be accepted based on the average accounting rate of return if the required rate is 14.75 percent? Why or why not? Year Net Income 1 \ 27,000 2 24,800 3 37,500 4 45,000

(Multiple Choice)

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Question 101

.Which one of the following indicates that a project should be rejected? Assume the cash flows are normal,i.e.,the initial cash flow is negative.

(Multiple Choice)

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Question 102

Which one of the following statements is correct?

(Multiple Choice)

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Question 103

A project has the following cash flows.What is the payback period? Year Cash Flow 0 -\ 14,500 1 2,200 2 4,800 3 6,500 4 7,600

(Multiple Choice)

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Question 104

A project has the following cash flows.What is the internal rate of return? Year Cash Flow 0 -\ 33,800 1 12,360 2 14,680 3 16,710

(Multiple Choice)

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Question 105

Chasteen,Inc.,is considering an investment with an initial cost of $145,000 that would be depreciated straight-line to a zero book value over the life of the project.The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years.What is the internal rate of return?

(Multiple Choice)

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Question 106

Which one of the following can be defined as a benefit-cost ratio?

(Multiple Choice)

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Question 107

Which one of the following is specifically designed to compute the rate of return on a project that has a multiple negative cash flows that are interrupted by one or more positive cash flows?

(Multiple Choice)

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Question 108

China Importers would like to spend $215,000 to expand its warehouse.However,the company has a loan outstanding that must be.repaid in 2.5 years and thus will need the $215,000 at that time.The warehouse expansion project is expected to increase the cash.inflows by $60,000 in the first year,$140,000 in the second year,and $150,000 a year for the following 2 years.Should the firm expand.at this time? Why or why not?

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Question 109

Showing 101 - 109 of 109

.Which one of the following indicates that a project should be rejected? Assume the cash flows are normal,i.e.,the initial cash flow is negative.

Which one of the following statements is correct?

A project has the following cash flows.What is the payback period? Year Cash Flow 0 -\ 14,500 1 2,200 2 4,800 3 6,500 4 7,600

A project has the following cash flows.What is the internal rate of return? Year Cash Flow 0 -\ 33,800 1 12,360 2 14,680 3 16,710

Which one of the following can be defined as a benefit-cost ratio?

Which one of the following is specifically designed to compute the rate of return on a project that has a multiple negative cash flows that are interrupted by one or more positive cash flows?

Introduction to Financial Management

Financial Statements,Taxes,and Cash Flow

Working With Financial Statements

Introduction to Valuation: The Time Value of Money

Discounted Cash Flow Valuation

Interest Rates and Bond Valuation

Equity Markets and Stock Valuation

Making Capital Investment Decisions

Some Lessons From Capital Market History

Risk and Return

Cost of Capital

Leverage and Capital Structure

Dividends and Dividend Policy

Raising Capital

Short-Term Financial Planning

Working Capital Management

International Aspects of Financial Management

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