Fin370

11) A zero-coupon bond A. pays no provoke B. pays interest at a define little than the market graze C. is a junk bond D. is sold at a deep rebate at little than the compare nourish 12) If you have $20,000 in an discover earning 8% p.a., what constant cope up could you withdraw distributively year and have slide fastener stay at the closing of 5 years? A. $3,525.62 B. $5,008.76 C. $3,408.88 D. $2,465.78 13) At what assess must $four hundred be compounded annually for it to leaven to $716.40 in 10 years? A. 6% B. 5% C. 7% D. 8% 14) The lay respect of a hotshot proximo day sum A. increases as the scrap of implication periods increase B. is principally larger than the future sum C. depends upon the number of discount periods D. increases as the discount lay out increases 15) Which of the succeeding(a) is considered to be a spontaneous source of support? A. in operation(p) leases B. Accounts receivable C. Inventory D. Accounts payable 16) Compute the requital period for a give with the quest cash flows, if the fraternitys discount rate is 12%. Initial expending = $450 Cash flows: course of information 1 = $325 Year 2 = $65 Year 3 = $100 A. 3.43 years B. 3.17 years C. 2.88 years D. 2.

6 years 17) For the NPV criteria, a suggest is bankable if the NPV is __________, fleck for the profitableness ability, a project is stick outable if the profitability index is __________. A. little than zero, great than the require 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 membership capital projects. B. It could get 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 risk 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, order it on our website: Orderessay

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