This preview shows page 1. Sign up to view the full content.
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 timevalueofmoney yardstick?
a. the accounting rate of return (ARR)
b. the breakeven 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...
View
Full
Document
This document was uploaded on 02/26/2014 for the course FNCE 341 at University of Calgary.
 Winter '14
 Chan
 Finance, Interest

Click to edit the document details