ACT349 F08 TT1 v03 post test for web Privacy Code A

ACT349 F08 TT1 v03 post test for web Privacy Code A -...

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ACT349 F08 TT1 v03 post test for web Privacy Code A Page 1 of 11 Family name, comma, personal names:____________________________________ Your student ID:______________________________________________________ Your signature: ______________________________________________________ UNIVERSITY OF TORONTO Faculty of Arts and Science ACT349 F08 TERM TEST 1, OCTOBER 1, 2008 Duration – 50 Minutes Aids: All calculators allowed. Scrap paper OK if needed. Instructor: Keith Sharp PhD FSA CFA NOTES: 1. Please identify your Privacy Code in the page footer (small letters at bottom of this page, A, B, C or D) and blob it as the answer for the question after the last real question (so blob as question 11 for a 10-question term test, as question 25 for a 24 question final). 2. Any scrap paper is to be handed in with this book. It’s OK to write on book. 3. This is a closed book exam. 4. Multiple choice: only your letter answer mark sense sheet will be graded. 5. Mark sense sheets: please write in both the blobs and eye-readable identifiers 6. Mark sense sheets: pencil preferred, ink might have to be hand-graded 7. Each question: 10 points correct, two if blank, zero points if wrong 8. So expectation if you guess is the same as leaving a blank. 9. Make sure you’ve indicated your letter answers on the mark sense sheet before time’s up 10. Please stay in your seats and don’t talk till all materials have been collected. 11. Photo ID on desk during exam 12. Name and student ID and signature on this question paper and on mark sense sheet 13. Good luck!
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ACT349 F08 TT1 v03 post test for web Privacy Code A Page 2 of 11 1. Consider this cash flow data on three possible projects A, B, C: A B C Time t -10 -10 -10 0 8 4.8 4 1 4 4.8 4 2 0 4.8 2 3 0 4.8 1 4 0 4.8 0 5 Only one project can be chosen. Your boss uses the payback rule (not the discounted payback rule) to decide between the three projects. You make other calculations using NPV at a hurdle rate of 8% per annum effective. You tell your boss (politely) that your decision method increases the company’s time 0 value by $X more than the boss’s method would. Calculate X. (A)Less than 8.1000 (B)8.1000 but less than 8.2000 (C)8.2000 but less than 8.3000 (D)8.3000 but less than 8.4000 (E)8.4000 or more (D) A B C Time t (1+h)^(-t) -10 -10 -10 0 1 8 4 . 841 0.925925926 4 4 . 842 0.85733882 0 4 . 823 0.793832241 0 4 . 814 0.735029853 0 4 .
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This note was uploaded on 09/27/2009 for the course STA ACT349 taught by Professor Sharp during the Fall '05 term at University of Toronto.

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ACT349 F08 TT1 v03 post test for web Privacy Code A -...

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