Chapter 10 (1) - Quiz ch 10(1 Question 1 0 out of 10 points The NPV of an project with an initial investment of $1,000 that provides after-tax operating

Chapter 10 (1) - Quiz ch 10(1 Question 1 0 out of 10 points...

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Quiz ch 10 (1)Question 1 0 out of 10 pointsThe NPV of an project with an initial investment of $1,000 that provides after-tax operating cash flows of $300 per year for four years where the firm's cost of capital is 15 percent is -$143.51.Selected Answer: False Correct Answer: Question 2 10 out of 10 pointsA sophisticated capital budgeting technique that can be computed by subtracting a project's initial investment from the present value of its cash inflows discounted at a rate equal to the firm's cost of capital is called internal rate of return.Selected Answer: False Correct Answer: Question 3 10 out of 10 pointsIn general, projects with similar-sized investments and lower early-year cash inflows (lower cash inflows in the early years) tend to be preferred at higher discount rates.Selected Answer: False Correct Answer: Question 4 10 out of 10 points
Table 10.5A firm must choose from six capital budgeting proposals outlined below. The firm is subject tocapital rationing and has a capital budget of $1,000,000; the firm's cost of capital is 15 percent.

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