QUIZ 1 C306 Financial Management 2 1.
Although quick and easy to apply, the payback method is deficient in that it: a. disregards the time value of money. b. is based on arithmetic rather than algebra. c. disregards cash flows after the payback period. d.
Project Analysis and Evaluation I. DEFINITIONS
FORECASTING RISK a 1. The possibility that errors in projected cash flows can lead to incorrect estimates of net present value is called _ risk. a. forecasting b. projection c. scenario d. Monte Ca
CHAPTER 12 Risk, Cost of Capital, and Capital Budgeting
Multiple Choice Questions: I. DEFINITIONS
WACC e 1. The weighted average of the firms costs of equity, preferred stock, and after tax debt is the: a. reward to risk ratio for the firm. b. expected ca