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- Multiple ChoicePlease save your changes before editing any questions.
Which of the following projects has the shortest payback period?
B
A
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following projects has the highest IRR?
B
A
- Multiple ChoicePlease save your changes before editing any questions.
Which of the following projects has the highest NPV?
A
B
- Multiple ChoicePlease save your changes before editing any questions.
If you are responsible for maximizing shareholder value and have to choose between project A and B, which project should you choose?
A
B
- Multiple ChoicePlease save your changes before editing any questions.
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
- Multiple ChoicePlease save your changes before editing any questions.
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
- Multiple ChoicePlease save your changes before editing any questions.Which of the following businesses would the simple payback period method be most appropriate?RestaurantSoftware developerDigital marketing agencyWaste recycling facility
- Multiple ChoicePlease save your changes before editing any questions.
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.
- Multiple ChoicePlease save your changes before editing any questions.
[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
- Multiple ChoicePlease save your changes before editing any questions.
[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
- Multiple ChoicePlease save your changes before editing any questions.
[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
- Multiple ChoicePlease save your changes before editing any questions.
[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