Busn 379 Final Exam Set 01 Pin It July 2013 Update Total 45 Mcqs

BUSN 379 Final Exam–SET 01

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BUSN 379 Final Exam–SET 01 (JULY 2013 UPDATE)

TOTAL 45 MCQs AND 5 SHORT QUESTIONS IN THE SOLUTION

FIVE IS SHOWN HERE

1. (TCO 4) Which of the following is true regarding the evaluation of projects? (Points : 4)

2. (TCO 4) Which of the following investment ranking methods does not consider the time value of money? (Points : 4)

3. (TCO 3 and 4) A net present value of zero implies that an investment: (Points : 4)

4. (TCO 3 and 4) What is the net present value of a project with the following cash flows, if the discount rate is 15 percent?

Year

0

1

2

3

4

Cash flow

-$45,000

$11,520

$13,630

$16,470

$18,990

(Points : 4)

5. (TCO 4) Leward Manufacturing is spending $115,000 to update its equipment. This is necessary if the firm wishes to be competitive in the marketplace and provide a wide array of product models. The company estimates that these updates will improve its cash inflows by $27,500 a year, for eight years. What is the payback period? (Points : 4)