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FIN 571 Final Exam.docx
Lois is purchasing an annuity that will pay 5000 annually for 20 years with the from FIN 571 at University of Phoenix
question 10 A project has an initial cost of $ 2,250 . The cash inflows are $ 0 , $ 500 , $ 900 , and $ 700 for Years 1 to 4 , respectively . What is the payback period ?
8Lois is purchasing an annuity that will pay $5,000 annually for 20 years, with the first annuity payment made on the date of purchase. What is the value of the annuity on the purchase date given a discount rate of 7 percent?$52,970.07$56,191.91$54,282.98$56,677.98$66,916.21
9All else held constant, interest rate risk will increase when the time to maturity:
question 10A project has an initial cost of $2,250. The cash inflows are $0, $500, $900, and $700 for Years 1 to 4, respectively. What is the payback period?
11Ratios that measure a firm's ability to pay its bills over the short run without undue stress are known as:
12Which one of the following is an example of a nondiversifiable risk?A key employee suddenly resigns and accepts employment with a key competitorA poorly managed firm suddenly goes out of business due to lack of salesA well-respected president of a firm suddenly resignsA well-managed firm reduces its work force and automates several jobsA well-respected chairman of the Federal Reserve Bank suddenly resigns
13A firm has a total debt ratio of .47. This means the firm has 47 cents in debt for every:
14You plan to invest $6,500 for three years at 4 percent simple interest. What will your investment be worth at the end of the three years?
15The excess return you earn by moving from a relatively risk-free investment to a risky investment is called the: