# chap08 - Garden of Marvin Real Estate has the opportunity...

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Sheet1 Page 1 Garden of Marvin Real Estate has the opportunity to purchase a new sign that will cost \$500. The sign will help generate addi t a. \$1,108.01 b. \$273.13 c. \$108.01 d. \$105.01 status: not answered () correct: c your answer: -------------------------------------------------------------------------------- 2 Which of the following capital budgeting tools uses a calculation that is analogous to yield-to-maturity calculations? a. payback period b. net present value c. internal rate of return d. all of the above status: not answered () correct: c your answer: -------------------------------------------------------------------------------- 3 One of the benefits of net present value over internal rate of return is: a. net present value uses the cash flows of the project. b. net present value measures the change in shareholder value that will occur if the project is taken. c. net present value gives a rate of return. d. all of the above. status: not answered () correct: b your answer: -------------------------------------------------------------------------------- 4 AcquaPorker Springs can purchase a new swimming pig (their old one died) for \$5,000. The new pig will encourage greater p a. 1.87 b. 1.67

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Sheet1 Page 2 c. 1.47 d. 1.27 status: not answered () correct: d your answer: -------------------------------------------------------------------------------- 5 Expressive Art can purchase a tattoo removal instrument for \$25,000. The new device will encourage a larger number of pe o a. 32.36% b. 23.24% c. 13.24% d. 3.24% status: not answered () correct: a your answer: -------------------------------------------------------------------------------- 6 AcquaPorker Springs can purchase a new swimming pig (their old one died) for \$5,000. The new pig will encourage greater p a. 21.86% b. 16.86% c. 11.86% d. 6.86% status: not answered () correct: a your answer: -------------------------------------------------------------------------------- 7 White Suns Shades can purchase a fabric fastener that will cost \$2,000. The fastener will reduce cash expense of \$600, \$1 , 0 a. 16.79% b. 15.79% c. 14.79% d. IRR should not be relied upon in this case
Sheet1 Page 3 status: not answered () correct: d your answer: -------------------------------------------------------------------------------- 8 Pardon Springs Swimming Club can purchase a water filter that will cost \$3,000. The filter will encourage more swimmers a n a. 2.01 b. 1.57 c. 1.11 d. 1.08 status: not answered () correct: c your answer:

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## This note was uploaded on 08/26/2011 for the course ECON 515 taught by Professor John during the Spring '11 term at American University of Kuwait.

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chap08 - Garden of Marvin Real Estate has the opportunity...

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