Chapter 10 Practice Questions

1100 c 1150 d 1330 8 what is the net

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Unformatted text preview: + $ 1,150 d. + $ 1,330 ____ 8. What is the net present value if the present value of the savings is $ 600 and the original investment is $ 1,000? a. – $ 600 b. – $ 400 c. + $ 400 d. + $ 600 ____ 9. In which interest table are the factors 1.100 and 1.685 found? a. the present value of an annuity table b. the future value of a single sum table c. the present value of a series of receipts table d. the present value of a single sum table ____ 10. In which interest table is the factor 0.9090 found? a. the future value of an annuity table b. the present value of a single sum table c. the future value of a series of receipts table d. the future value of a single sum table ____ 11. A company uses annuity tables to calculate the present or future value of a series. What is the nature of the amounts? a. They are even amounts for a specified number of years. b. They are even amounts for only one year. c. They are uneven amounts for a specified number of years. d. They are fixed amounts for only one year. ____ 12. Which of the following is a time-value-of-money yardstick? a. the accounting rate of return (ARR) b. the break-even analysis (BEA) c. the net present value (NPV) d. the earnings per share (EPS) ____ 13. What should the IRR exceed for a capital project to be favourable? a. the return on assets b. the weighted average cost of equity c. the weighted average cost of debt d. the weighte...
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This document was uploaded on 02/26/2014 for the course FNCE 341 at University of Calgary.

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