chap 5 quiz questions

chap 5 quiz questions - Questi on 1 The difference between...

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Questi on 1 10 out of 10 points The difference between the present value of an investment and its cost is the: Selected Answer:
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Question 2 10 out of 10 points When two projects both require the total use of the same limited economic resource, the projects are generally considered to be: Selected Answer: Question 3 10 out of 10 points The discounted payback period rule: Selected Answer: Question 4 10 out of 10 points Which one of the following is the best example of two mutually exclusive projects? Selected Answer: Question 5 10 out of 10 points If a project has a net present value equal to zero, then: (I) the present value of the cash inflows exceeds the initial cost of the project. (II) the project produces a rate of return that just equals the rate required to accept the project. (III) the project is expected to produce only the minimally required cash inflows. (IV) any delay in receiving the projected cash inflows will cause the project to have a negative net present value. Selected Answer: Question 6 10 out of 10 points The internal rate of return may be defined as:
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Question 6 10 out of 10 points Selected Answer: Question 7 10 out of 10 points A mutually exclusive project is a project whose: Selected Answer: Question 8 10 out of 10 points The payback period rule: Selected Answer: Question 9 0 out of 10 points An investment is acceptable if the profitability index (PI) of the investment is: Selected Answer: Question 10 0 out of 10 points Given that the net present value (NPV) is generally considered to be the best method of analysis, why should you still use the other methods? Selected Answer: Analysis using the profitability index:
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Selected Answer: is useful as a decision tool when investment funds are limited. A project will have
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This note was uploaded on 04/10/2010 for the course FIN 600 taught by Professor Hansen during the Spring '10 term at Ramapo.

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chap 5 quiz questions - Questi on 1 The difference between...

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