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 cabalistic neglect at less than the comparability nourish 12) If you piddle $20,000 in an account earning 8% annually, what constant come up could you withdraw each year and have nothing check mark 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 arrange must $400 be compounded annually for it to invoke to $716.40 in 10 years? A. 6% B. 5% C. 7% D. 8% 14) The present value of a single proximo day sum A. appends 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 oral source of financing? A. in operation(p) leases B. Accounts receivable C. In ventory D. Accounts collectable 16) Compute the requital period for a find out with the pas age cash flows, if the companys discount rate is 12%. Initial outlay = $450 Cash flows: course of instruction 1 = $325 Year 2 = $65 Year 3 = $ coke 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, greater than the postulate return B. greater than zero, greater than one C. greater than one, greater than zero D. greater t! han 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 put down up more than one rate of return. C. It fails to utilize the time value of money. D. It is not useful in accounting for luck 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, cast it on our website: BestEssayCheap.com

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