Fin 3090, Exam 1
Which of the following could explain why a business might choose to operate as a
corporation rather than as a sole proprietorship?
a. Corporations generally face fewer regulations and are easier to form.
1. If you are evaluating a normal, independent project, then you should accept the project as long as The Discounted Payback Period exists.
Use the following information for questions 2 and 3: Project S has cash flows of (600), 400, 300. Project L has cas
Finance 3090, HW4
Use the following information for questions 1-3:
Correlation with Market
1. Approximately wha
Finance 3090, HW5
1. If you are evaluating a normal, independent project, then you should accept the project as long as _.
The IRR is positive
The Payback Period exists
The Modified IRR is greater than the IRR
The Discounted Payback Period exi
Fin 3090 Cash Flow Estimation Practice
Alliance is considering automating their production process to become more efficient. In order to do so they will buy a new monorail manufacturing system at a cost of $1,000,000. The system will be depreciated
Finance 3090, HW 3
1. Which of the following is likely to result in a lower nominal risk free rate?
a) More good investment opportunities
b) Higher time preference for consumption
c) An increase in the supply of money
d) An increase in the demand
Finance 3090, Spring 2016, Exam 2
1. Suppose the current one-year Treasury Bill rate is 5%, the current three-year Treasury Bond rate is 4.9%, and the current five-year
Treasury Bond rate is 4.8%. According to the expectations theory of interest rates, wh
McDonalds Corp. is considering opening up a new franchise in Natchitoches. The building can be
purchased for $500,000 and this entire amount would be depreciated using seven-year MACRS (15%,
25%, 17%, 12%, 9%, 9%, 9%, 4%). However, the building would be s
Finance 3090, Spring 2017, Exam 2
1. Which statement is TRUE?
The return on Treasury Bills is usually lower than the return on Treasury Bonds
An upward sloping Yield curve is often a sign of a po