Chapter 10 Practice Questions

Ans blm 11 ans blm 12 ans blm 13 ans blm 14 ans blm 15

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Unformatted text preview: ANS: BLM: 12. ANS: BLM: 13. ANS: BLM: 14. ANS: BLM: 15. ANS: BLM: C Remember A Remember B Remember B Remember A Remember C Remember D Higher Order B Higher Order B Remember B Remember A Remember C Remember D Remember C Remember B Remember PTS: 1 REF: 425 OBJ: LO 1 PTS: 1 REF: 445 OBJ: LO 5 PTS: 1 REF: 45 OBJ: LO 1 PTS: 1 REF: 436 OBJ: LO 3 PTS: 1 REF: 435 OBJ: LO 3 PTS: 1 REF: 435 OBJ: LO 3 PTS: 1 REF: 434 OBJ: LO 3 PTS: 1 REF: 447 OBJ: LO 5 PTS: 1 REF: 429 OBJ: LO 2 PTS: 1 REF: 429 OBJ: LO 2 PTS: 1 REF: 436 OBJ: LO 3 PTS: 1 REF: 447 OBJ: LO 5 PTS: 1 REF: 449 OBJ: LO 5 PTS: 1 REF: 434 OBJ: LO 3 PTS: 1 REF: 447 OBJ: LO 5 PROBLEM 1. ANS: The undiscounted cash outflow is ($ 125,000). PTS: 1 REF: 445 2. ANS: The undiscounted cash inflow is $ 150,000. PTS: 1 3. ANS: REF: 445 The undiscounted net present cash flow is $ 25,000. Undiscounted cash outflow Undiscounted cash inflow Undiscounted net present value of the cash flow ($ 125,000) $ 150,000 $ 25,000 PTS: 1 REF: 445-447 4. ANS: The discounted present value of the cash inflow is $ 124,340. $ 50,000 × 2.4868 = $ 124,340 PTS: 1 REF: 429-430 | 438-440 5. ANS: The net present value of the discounted cash flow is ($ 660). Cash outflow Future cash inflow Future value of the net cash flow PTS: 1 REF: 447 ($ 125,000) $ 124,340 $ 660)...
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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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