BUSN 379 Final Exam–SET 01

BUSN 379 Final Exam–SET 01 (JULY 2013 UPDATE)

TOTAL 45 MCQs AND 5 SHORT QUESTIONS IN THE SOLUTION

FIVE IS SHOWN HERE

 1.  (TCO 4) Which of the following is true regarding the evaluation of projects?

(Points : 4)

 2. (TCO 4) Which of the following investment ranking methods does not consider the time value of money? (Points : 4) 3. (TCO 3 and 4) A net present value of zero implies that an investment: (Points : 4) 4. (TCO 3 and 4) What is the net present value of a project with the following cash flows, if the discount rate is 15 percent? Year01234Cash flow-$45,000$11,520$13,630$16,470$18,990 (Points : 4) 

5. (TCO 4) Leward Manufacturing is spending $115,000 to update its equipment. This is necessary if the firm wishes to be competitive in the marketplace and provide a wide array of product models. The company estimates that these updates will improve its cash inflows by $27,500 a year, for eight years. What is the payback period? (Points : 4)