Fin370

11) A zero-coupon bond A. pays no interest B. pays interest at a position little than the market graze C. is a junk bond D. is sold at a deeply send packing at less than the comparability nourish 12) If you pass on $20,000 in an account earning 8% annually, what constant come up could you withdraw each year and have nothing anticipate at the end of 5 years? A. $3,525.62 B. $5,008.76 C. $3,408.88 D. $2,465.78 13) At what direct must $400 be compounded annually for it to essay to $716.40 in 10 years? A. 6% B. 5% C. 7% D. 8% 14) The present value of a single prox day sum A. amplifications as the number of discount periods increase B. is generally larger than the future sum C. depends upon the number of discount periods D. increases as the discount rate increases 15) Which of the succeeding(a) is considered to be a free source of financing? A. in operation(p) leases B. Accounts receivable C. Inventory D. Accounts payable 16) Compute the retribution period for a excogitate with the pursuance cash flows, if the companys discount rate is 12%. Initial outlay = $450 Cash flows: course of instruction 1 = $325 Year 2 = $65 Year 3 = $ coulomb A. 3.43 years B. 3.17 years C. 2.88 years D. 2.

6 years 17) For the NPV criteria, a project is bankable if the NPV is __________, while for the profitableness index, a project is acceptable if the profitability index is __________. A. less than zero, great than the compulsory return B. greater than zero, greater than one C. greater than one, greater than zero D. ! greater than zero, less than one 18) Which of the following is considered to be a deficiency of the IRR? A. It fails to properly rank capital projects. B. It could charter up more than one rate of return. C. It fails to utilize the condemnation value of money. D. It is not useful in accounting for fortune in capital budgeting. 19) The firm should accept independent projects if A. the payback is less than the IRR B....If you want to get a full essay, outrank it on our website: BestEssayCheap.com

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