{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

2nd midterm ver A

2nd midterm ver A - 2st Midterm UGBA 103 Spring 2009 Do not...

Info icon This preview shows pages 1–24. Sign up to view the full content.

View Full Document Right Arrow Icon
2 st Midterm UGBA 103 Spring 2009 Do not open the test until instructed to do so. Please beginby printing your name and section information. Thensign your name at the bottom of the page. Print your name: _______________________________________________ Print your SID #: _______________________________________________ Print your section number: ___________________________________ When you are instructed to open the exam, please beginby initially everypage in the top right-hand corner. This midterm is closed book. You may refer to 1 double-sided page of notes. The notes may be typewritten. The page cannot exceed 8.5" x 11" (i.e., a standard sheet of paper). You may use any calculator.You may not use a computer. All cell phones must be turned off. You may not place or receive calls, send or receive textmessages, or access the Internet during this exam. Many of the questions are multiplechoice.You only get credit for correct answers. If a question requires more than one answer (e.g., partA and partB), you will getpartial credit if you answer some, but not all, parts correctly. You are not required to showyour calculations and will not getcredit for showing work that results in an incorrect answer. I will distribute different versions of the exam. These may have questions in different order; answers in different order; and/ordifferent input numbers (e.g., different interest rates) in otherwise similar questions. There are 20 questions. Each question counts for 3 points unless otherwise indicated. Please note that the first  12 questions are multiple choice and are likely to take less time. Budget your time accordingly. Sign your name: ____________________________________ 1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
a 2
Image of page 2
Name___________________________________   MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.  1)  3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The  Sisyphean  Company  is  considerin g a new  project  that will  have an  annual  depreciati on  expense  of $2.5  million.  If  Sisyphean' s marginal  corporate  tax rate is  40% and  their  average  corporate  tax rate is  30%, then  what is  this year’s  value of  the  depreciati on tax  shield on  their new  project  (assuming  that  Sisyphean  plenty of  income  that it  needs to  shield)? 
Image of page 4
1) 
Image of page 5

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
_____  A) 
Image of page 6
$1,000,000 
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
B) 
Image of page 8
$750,000 
Image of page 9

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
C) 
Image of page 10
$1,750,000 
Image of page 11

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
D)  $ 1  
Image of page 12
You are  considerin investing  $600,000  in a new  automated  inventory  system  that will  provide an  after - tax  cost  savings of  $50,000  next year.  These cost  savings  are  expected  to grow at  the same  rate as  sales.  If  sales are  expected  to grow at  5% per  year and  your cost  of capital  is 10%,  then what  is the  NPV of  the  automated  inventory  system? 
Image of page 13

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
2)  _____  A
Image of page 14
$400,000 
Image of page 15

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
B) 
Image of page 16
$1,000,000 
Image of page 17

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
C) 
Image of page 18
$500,000 
Image of page 19

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
D)  - $ 0  
Image of page 20
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern