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Corporate Finance Homework 8

18 Questions  I  By Cddobbins
Corporate Finance Homework 8
These are the homework questions for Chapter 8 in Corporate Finance.

  
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Question Excerpt

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1.  The net present value profile illustrates how the net present value of an investment is affected by which one of the following?
A.
B.
C.
D.
E.
2.  Both Projects A and B are acceptable as independent projects. However, the selection of either one of these projects eliminates the option of selecting the other project. Which one of the following terms best describes the relationship between Project A and Project B?
A.
B.
C.
D.
E.
3.  You were recently hired by a firm as a project analyst. The owner of the firm is unfamiliar with financial analysis and only wants to know what the expected dollar return is per dollar spent on a given project. Which financial method of analysis will provide the information that the owner requests?
A.
B.
C.
D.
E.
4.  The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:
A.
B.
C.
D.
E.
5.  Discounted cash flow valuation is the process of discounting an investment's:
A.
B.
C.
D.
E.
6.  Which one of the following statements is correct?
A.
B.
C.
D.
E.
7.  Which one of the following defines the internal rate of return for a project?
A.
B.
C.
D.
E.
8.  Which one of the following indicates that a project is expected to create value for its owners?
A.
B.
C.
D.
E.
9.  The internal rate of return is unreliable as an indicator of whether or not an investment should be accepted given which one of the following?
A.
B.
C.
D.
E.
10.  Which one of the following is generally considered to be the best form of analysis if you have to select a single method to analyze a variety of investment opportunities?
A.
B.
C.
D.
E.
11.  The net present value:
A.
B.
C.
D.
E.
12.  Which one of the following statements is correct?
A.
B.
C.
D.
E.
13.  Which one of the following is the primary advantage of payback analysis?
A.
B.
C.
D.
E.
14.  Based on the most recent survey information presented in your textbook, CFOs tend to use which two methods of investment analysis the most frequently?
A.
B.
C.
D.
E.
15.  Which one of the following can be defined as a benefit-cost ratio?
A.
B.
C.
D.
E.
16.  Which one of the following indicates that a project should be rejected?
A.
B.
C.
D.
E.
17.  Mary has just been asked to analyze an investment to determine if it is acceptable. Unfortunately, she is not being given sufficient time to analyze the project using various methods. She must select one method of analysis and provide an answer based solely on that method. Which method do you suggest she use in this situation?
A.
B.
C.
D.
E.
18.  Which one of the following is an indicator that an investment is acceptable?
A.
B.
C.
D.
E.
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