下载本文档
版权说明:本文档由用户提供并上传,收益归属内容提供方,若内容存在侵权,请进行举报或认领
文档简介
…………………………最新资料推荐…………………CHAPTER7NetPresentValueandOtherInvestmentRulesMultipleChoiceQuestions:DEFINITIONSNETPRESENTa 1. Thedifferencebetweenthepresentvalueofaninvestmentanditscostisthe:fitabilityindex.discountedpaybackperiod.Difficultylevel:EasyNETPRESENTVALUERULEc 2. Whichoneofthefollowingstatementsconcerningnetpresentvalue(NPV)iscorrect?Aninvestmentshouldbeacceptedif,andonlyif,theNPVisexactlyequaltozero.AninvestmentshouldbeacceptedonlyiftheNPVisequaltotheinitialcashflow.AninvestmentshouldbeacceptediftheNPVispositiveandrejectedifitisnegative.Aninvestmentwithgreatercashinflowsthancashoutflows,regardlessofwhenthecashflowswillalwayshaveapositiveNPVandthereforeshouldalwaysbeaccepted.Anyprojectthathaspositivecashflowsforeverytimeperiodaftertheinitialinvestmentshouldaccepted.Difficultylevel:EasyPAYBACKc 3. Thelengthoftimerequiredforaninvestmenttogeneratecashflowssufficienttorecovertheinitialcostoftheinvestmentiscalledthe:fitabilityindex.discountedcashperiod.Difficultylevel:EasyPAYBACKRULEa 4. Whichoneofthefollowingstatementsiscorrectconcerningthepaybackperiod?Aninvestmentisacceptableifitscalculatedpaybackperiodislessthansomepre-specifiedperiodtime.Aninvestmentshouldbeacceptedifthepaybackispositiveandrejectedifitisnegative.Aninvestmentshouldberejectedifthepaybackispositiveandacceptedifitisnegative.Aninvestmentisacceptableifitscalculatedpaybackperiodisgreaterthansomepre-specifiedperiodoftime.Aninvestmentshouldbeacceptedanytimethepaybackperiodislessthanthediscountedpaybackperiod,givenapositivediscountrate.Difficultylevel:EasyDISCOUNTEDPAYBACK……………最新资料推荐……………最新资料推荐…………………e 5.a.b.c.d.e.
Thelengthoftimerequiredforaproject’sdiscountedcashflowstoequaltheinitialcostoftheprojectiscalledthe:ernalrateofreturn.paybackperiod.discountedprofitabilityindex.discountedpaybackperiod.Difficultylevel:EasyDISCOUNTEDPAYBACKRULEd 6. Thediscountedpaybackrulestatesthatyoushouldacceptprojects:whichhaveadiscountedpaybackperiodthatisgreaterthansomepre-specifiedperiodoftime.ifthediscountedpaybackispositiveandrejectedifitisnegative.onlyifthediscountedpaybackperiodequalssomepre-specifiedperiodoftime.ifthediscountedpaybackperiodislessthansomepre-specifiedperiodoftime.onlyifthediscountedpaybackperiodisequaltozero.Difficultylevel:EasyAVERAGEACCOUNTINGRETURNc 7. Aninvestment’saveragenetincomedividedbyitsaveragebookvaluedefinestheaverage:fitabilityindex.paybackperiod.Difficultylevel:EasyAVERAGEACCOUNTINGRETURNRULEb 8. Aninvestmentisacceptableifitsaverageaccountingreturn(AAR):islessthanatargetAAR.exceedsatargetAAR.exceedsthefirm’sreturnonequity(ROE).islessthanthefirm’sreturnonassets(ROA).isequaltozeroandonlywhenitisequaltozero.Difficultylevel:EasyINTERNALRATEOFRETURN9. Thediscountratethatmakesthenetpresentvalueofaninvestmentexactlyequalzeroiscalledthe:fitabilityindex.equalizer.Difficultylevel:EasyINTERNALRATEOFRETURNRULE10. AninvestmentisacceptableifitsIRR:isexactlyequaltoitsnetpresentvalue(NPV).isexactlyequaltozero.islessthantherequiredreturn.exceedstherequiredreturn.isexactlyequalto100percent.Difficultylevel:EasyMULTIPLERATESOFRETURN11. ThepossibilitythatmorethanonediscountratewillmaketheNPVofaninvestmentequaltozerocalledthe presentvalueprofilingoperationalambiguitymutuallyexclusiveinvestmentdecisionissuesofscalemultipleratesofreturnDifficultylevel:MediumMUTUALLYEXCLUSIVEPROJECTSc 12. Asituationinwhichacceptingoneinvestmentpreventstheacceptanceofanotherinvestmentisthe:netpresentvalueprofile.operationalambiguitydecision.mutuallyexclusiveinvestmentdecision.issuesofscaleproblem.multiplechoicesofoperationsdecision.Difficultylevel:EasyPROFITABILITYINDEX13. Thepresentvalueofaninvestment’sfuturecaseoteitlcostoftheinvestmentiscalledthe:fileperiod.Difficultylevel:EasyPROFITABILITYINDEXRULEa 14. Aninvestmentisacceptableiftheprofitabilityindex(PI)oftheinvestmentis:greaterthanone.lessthanone.greaterthantheinternalrateofreturn(IRR).lessthanthenetpresentvalue(NPV).greaterthanapre-specifiedrateofreturn.Difficultylevel:EasyCONCEPTSNETPRESENTVALUEd 15. Allelseconstant,thenetpresentvalueofaprojectincreaseswhen:thediscountrateincreases.eachcashinflowisdelayedbyoneyear.theinitialcostofaprojectincreases.therateofreturndecreases.allcashinflowsoccurduringthelastyearofaproject’slifeinsteadofperiodicallythroughoutthelifeoftheproject.Difficultylevel:EasyNETPRESENTVALUEa 16. Theprimaryreasonthatcompanyprojectswithpositivenetpresentvaluesconsideredacceptableisthat:theycreatevaluefortheownersofthefirm.theproject’srateofreturnexceedstherateofinflation.theyreturntheinitialcashoutlaywithinthreeyearsorless.therequiredcashinflowsexceedtheactualcashinflows.theinvestment’scostexceedsthepresentvalueofthecashinflows.Difficultylevel:EasyNETPRESENTVALUEd 17. Ifaprojecthasanetpresentvalueequaltozero,then:thepresentvalueofthecashinflowsexceedstheinitialcostoftheproject.theprojectproducesarateofreturnthatjustequalstheraterequiredtoacceptproject.theprojectisexpectedtoproduceonlytheminimallyrequiredcashinflows.anydelayinreceivingtheprojectedcashinflowswillcausetheprojecttohavenegativenetpresentvalue.IIandIIIonlyIIandIVonlyI,II,andIVonlyII,III,andIVonlyI,II,andIIIonlyDifficultylevel:MediumNETPRESENTVALUE18. Netpresentvalue:cannotbeusedwhendecidingbetweentwomutuallyexclusiveprojects.ismoreusefultodecisionmakersthantheinternalrateofreturnwhencomparingdifferentsizedprojects.iseasytoexplaintonon-financialmanagersandthusistheprimarymethodofanalysisusedbythelowestlevelsofmanagement.isnotanaswidelyusedtoolaspaybackanddiscountedpaybackisverysimilarinitsmethodologytotheaverageaccountingreturn.Difficultylevel:EasyPAYBACK19. Paybackisfrequentlyusedtoanalyzeindependentprojectsbecause:itconsidersthetimevalueofmoney.allrelevantcashflowsareincludedintheanalysis.itiseasyandquicktocalculate.itisthemostdesirableofalltheavailableanalyticalmethodsfromafinancialperspective.itproducesbetterdecisionsthanthosemadeusingeitherNPVorIRR.Difficultylevel:EasyPAYBACK20. Theadvantagesofthepaybackmethodofprojectanalysisincludethe:applicationofadiscountratetoeachseparatecashflow.biastowardsliquidity.easeofuse.arbitrarycutoffpoint.IandIIonlyIandIIIonlyIIandIIIonlyIIandIVonlyII,III,andIVonlyDifficultylevel:MediumPAYBACK21. Allelseequal,thepaybackperiodforaprojectwilldecreasewheneverthe:initialcostincreases.requiredreturnforaprojectincreases.assigneddiscountratedecreases.cashinflowsaremovedforwardintime.durationofaprojectislengthened.Difficultylevel:MediumDISCOUNTEDPAYBACKd 22. Thediscountedpaybackperiodofaprojectwilldecreasewheneverthe:discountrateappliedtotheprojectisincreased.initialcashoutlayoftheprojectisincreased.timeperiodoftheprojectisincreased.amountofeachprojectcashflowisincreased.costsofthefixedassetsutilizedintheprojectincrease.Difficultylevel:MediumDISCOUNTEDPAYBACK23. Thediscountedpaybackrulemaycause:jectswithnegativenetpresentvaluestobeaccepted.someprojectstobeacceptedwhichwouldotherwiseberejectedunderthepaybackrule.Difficultylevel:EasyINTERNALRATEOFRETURN24. Theinternalrateofreturn(IRR):rulestatesthataprojectwithanIRRthatislessthantherequiredrateshouldaccepted.istherategeneratedsolelybythecashflowsofaninvestment.istheratethatcausesthenetpresentvalueofaprojecttoexactlyequalzero.caneffectivelybeusedtoanalyzeallinvestmentscenarios.IandIVonlyIIandIIIonlyI,II,andIIIonlyII,III,andIVonlyI,II,III,andIVDifficultylevel:MediumINTERNALRATEOFRETURNa 25. Theinternalrateofreturnforaprojectwillincreaseif:theinitialcostoftheprojectcanbereduced.thetotalamountofthecashinflowsisreduced.eachcashinflowismovedsuchthatitoccursoneyearlaterthanoriginallyprojected.therequiredrateofreturnisreduced.thesalvagevalueoftheprojectisomittedfromtheanalysis.Difficultylevel:MediumINTERNALRATEOFRETURNc 26. Theinternalrateofreturnis:morereliableasadecisionmakingtoolthannetpresentvaluewheneveryouconsideringmutuallyexclusiveprojects.equivalenttothediscountratethatmakesthenetpresentvalueequaltoone.difficulttocomputewithouttheuseofeitherafinancialcalculatororacomputer.dependentupontheinterestratesofferedinthemarketplace.abettermethodologythannetpresentvaluewhendealingwithunconventionalflows.Difficultylevel:MediumINTERNALRATEOFRETURNa 27. Theinternalrateofreturntendstobe:easierformanagerstocomprehendthanthenetpresentvalue.extremelyaccurateevenwhencashflowestimatesarefaulty.ignoredbymostfinancialanalysts.usedprimarilytodifferentiatebetweenmutuallyexclusiveprojects.utilizedinprojectanalysisonlywhenmultiplenetpresentvaluesapply.Difficultylevel:EasyINCREMENTALINTERNALRATEOFRETURNe 28. YouaretryingtodeterminewhethertoacceptprojectAorprojectB.Theseprojectsaremutuallyexclusive.Aspartofyouranalysis,youshouldcomputetheincrementedIRRbydetermining:theinternalrateofreturnforthecashflowsofeachproject.thenetpresentvalueofeachprojectusingtheinternalrateofreturnasthediscountrate.thediscountratethatequatesthediscountedpaybackperiodsforeachproject.thediscountratethatmakesthenetpresentvalueofeachprojectequalto1.theinternalrateofreturnforthedifferencesinthecashflowsofthetwoprojects.Difficultylevel:MediumINCREMENTALINTERNALRATEOFRETURNb 29. GraphingtheincrementalIRRhelpsexplain:whyoneprojectisalwayssuperiortoanotherproject.howdecisionsconcerningmutuallyexclusiveprojectsarederived.howthedurationofaprojectaffectsthedecisionastowhichprojecttoaccept.howthenetpresentvalueandtheinitialcashoutflowofaprojectarerelated.howtheprofitabilityindexandthenetpresentvaluearerelated.Difficultylevel:MediumPROFITABILITYINDEXd 30. Theprofitabilityindexiscloselyrelatedto:presentvalue.mutuallyexclusiveprojects.Difficultylevel:EasyPROFITABILITYINDEXb 31. Analysisusingtheprofitabilityindex:ducesresultswhichtypicallyaredifficulttocomprehendorapply.Difficultylevel:MediumPROFITABILITYINDEXe 32. Ifyouwanttoreviewaprojectfromabenefit-costperspective,youshouldusethe presentvaluepaybackinternalrateofreturnaverageaccountingreturnprofitabilityindexDifficultylevel:EasyPROFITABILITYINDEX33. Whenthepresentvalueofthecashinflowsexceedstheinitialcostofaproject,theprojectshouldbe:acceptedbecausetheinternalrateofreturnispositive.acceptedbecausetheprofitabilityindexisgreaterthan1.acceptedbecausetheprofitabilityindexisnegative.rejectedbecausetheinternalrateofreturnisnegative.rejectedbecausethenetpresentvalueisnegative.Difficultylevel:EasyMUTUALLYEXCLUSIVEPROJECTS34. Whichoneofthefollowingisthebestexampleoftwomutuallyexclusiveprojects?planningtobuildawarehouseandaretailoutletsidebysidebuyingsufficientequipmenttomanufacturebothdesksandchairssimultaneouslyusinganemptywarehouseforstorageorrentingitentirelyouttoanotherfirmusingthecompanysalesforcetopromotesalesofbothshoesandsocksbuyingbothinventoryandfixedassetsusingfundsfromthesamebondissueDifficultylevel:MediumMUTUALLYEXCLUSIVEPROJECTS35. TheLibertyCo.isconsideringtwoprojects.ProjectAconsistsofbuildingawholesalebookoutletonlot#169oftheEnglewoodRetailCenter.ProjectBconsistsofbuildingasit-downrestaurantonlot#169oftheEnglewoodRetailCenter.Whentryingtodecidewhetherorbuildthebookoutletortherestaurant,managementshouldrelymostheavilyontheanalysisresultsfromthe fitabilityindexinternalrateofreturnpaybacknetpresentvalueaccountingrateofreturnDifficultylevel:MediumMUTUALLYEXCLUSIVEPROJECTSc 36. Whentwoprojectsbothrequirethetotaluseofthesamelimitedeconomicresource,theprojectsaregenerallyconsideredtobe:ernallyprofitable.Difficultylevel:EasyMUTUALLYEXCLUSIVEPROJECTSc 37. Mattisanalyzingtwomutuallyexclusiveprojectsofsimilarsizeandhaspreparedfollowingdata.Bothprojectshave5yearlives.ProjectAProjectBNetpresentvalue$15,090$14,693PaybackperiodAverageaccountingreturn2.76years9.3percent2.51years9.6percentRequiredreturn8.3percent8.0percentRequiredAAR9.0percent9.0percentMatthasbeenaskedforhisbestrecommendationgiventhisinformation.Hisrecommendationshouldbetoaccept:projectBjectAandrejectprojectBjectBandrejectprojectAjectBandrejectprojectAbasedonboththepaybackperiodandtheaverageaccountingreturn.Difficultylevel:MediumINVESTMENTANALYSISa 38. Giventhatthenetp
温馨提示
- 1. 本站所有资源如无特殊说明,都需要本地电脑安装OFFICE2007和PDF阅读器。图纸软件为CAD,CAXA,PROE,UG,SolidWorks等.压缩文件请下载最新的WinRAR软件解压。
- 2. 本站的文档不包含任何第三方提供的附件图纸等,如果需要附件,请联系上传者。文件的所有权益归上传用户所有。
- 3. 本站RAR压缩包中若带图纸,网页内容里面会有图纸预览,若没有图纸预览就没有图纸。
- 4. 未经权益所有人同意不得将文件中的内容挪作商业或盈利用途。
- 5. 人人文库网仅提供信息存储空间,仅对用户上传内容的表现方式做保护处理,对用户上传分享的文档内容本身不做任何修改或编辑,并不能对任何下载内容负责。
- 6. 下载文件中如有侵权或不适当内容,请与我们联系,我们立即纠正。
- 7. 本站不保证下载资源的准确性、安全性和完整性, 同时也不承担用户因使用这些下载资源对自己和他人造成任何形式的伤害或损失。
最新文档
- 三年级下册22课教学课件教学
- 《机械原理 第5版》 课件 刘会英 01-绪论、02-机构组成、03-机构性能
- 2024年高等教育服务项目规划申请报告样稿
- 在哪下载课件教学课件
- 汽车发动机课件
- 已完工程主要材料单价控制情况统计表
- 李一环连锁门店标准化盈利复制讲师与零售店长工作手册提炼方法论
- 纺织行业纺织印染行业循环经济方案
- 农业产业链品质提升方案
- 公共游泳池安全管理预案
- 可填充颜色的中国地图
- 外科学课件-后天性心脏病的外科治疗
- 后勤保障部5月份团队量化考核自评
- 广西师范大学周年校庆志愿者工作手册
- 三下《动物的一生》教材解读
- 高中英语新外研版选择性必修四unit2Tuesdays with Morrie课件(精编)
- 部编版语文四年级上册第四单元《习作:我和-过一天》 一等奖创新教案
- 南京市下关滨江地区城市设计
- 商务汉语词汇研究共3篇
- 09X700 智能建筑弱电工程设计与施工(下册)
- 行为习惯的养成教育
评论
0/150
提交评论