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- 1. Multiple Choice
Which of the following projects has the shortest payback period?
B
A
- 2. Multiple Choice
Which of the following projects has the highest IRR?
B
A
- 3. Multiple Choice
Which of the following projects has the highest NPV?
A
B
- 4. Multiple Choice
If you are responsible for maximizing shareholder value and have to choose between project A and B, which project should you choose?
A
B
- 5. Multiple Choice
You have 120 capital to be allocated among the 5 projects. If you pick projects with the highest NPV first, the maximum NPV you can achieve is:
16
21
19
14
- 6. Multiple Choice
You have 120 capital to be allocated among the 5 projects. If you pick projects that have the highest impact first, the maximum NPV you can achieve is:
17
16
21
19
- 7. Multiple ChoiceWhich of the following businesses would the simple payback period method be most appropriate?RestaurantSoftware developerDigital marketing agencyWaste recycling facility
- 8. Multiple Choice
Which of the following statements best describes the IRR?
The rate of return on the investment calculated based on cash inflows and outflows.The rate of return on the investment calculated based on investment capital and profit generated.
The minimum rate of return required for the business to be profitable.The maximum rate of return that the business could generate.
- 9. Multiple Choice
[HARD] Based on the information provided, what are the economic value added in year 1, 2 and 3?
0.80, 0.33, 0.00
2.00, 1.65, 1.44
1.00, 0.65, 1.08
1.20, 1.32, 1.44
- 10. Multiple Choice
[HARD] Assume that invested capital will grow at 3% forever in the future. The NPV of this investment is closest to:
0.98
10.00
1.13
10.98
- 11. Multiple Choice
[HARD] Based on the information provided, what are the free cash flow in year 1, 2 and 3?
1.00, 0.65, 1.08
2.00, 1.65, 1.44
0.80, 0.33, 0.00
1.20, 1.32, 1.44
- 12. Multiple Choice
[HARD] Assume that free cash flow will grow at 3% forever in the future. The NPV of this investment is closest to:
0.98
2.73
4.54
2.18
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