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单选题 Flo's Flowers has a project costing $40,000 and cash flows of $8,500, $15,600, and $22,700 for Years 1 to 3, respectively. Based on the profitability index rule, should the project be accepted if the discount rate is 9.5 percent? Why or why not
学科：2023-2024-2 公司理财（英）
时间：2024-06-18 03:11:41
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题目1单选题
An investment cost $10,000 with expected cash flows of $3,000 a year for 5 years. What is the project's IRRA. 15.24%B. 27.22%C. 0%D. 16.67%
题目2单选题
An investment with an initial cost of $4,000 produces cash flows of $3,400, −$500, $2,800, −$100, and $6,000 for Years 1 to 5, respectively. How many IRR's does this project haveA. 4B. 3C. 5D. 6
题目3单选题
Project A costs $84,500 and has cash flows of $32,300, $36,400, and $30,000 for Years 1 to 3, respectively. Project B has an initial cost of $79,000 and has cash flows of $30,000, $36,000, and $29,000 for Years 1 to 3, respectively. What is the incremental IRR of these two mutually exclusive projectsA. 18.11%B. 13.01%C. −20.37%D. −16.75%
题目4单选题
Jack is considering adding toys to his general store. He estimates the cost of toy inventory will be $4,200. The remodeling and shelving costs are estimated at $1,500. Toy sales are expected to produce net annual cash inflows of $1,200, $1,500, $1,600, and $1,750 over the next four years, respectively. Should Jack add toys to his merchandise if he requires a three-year payback period? Why or why notA. yes; because the payback period is 2.02 yearsB. yes; because the payback period is 3.80 yearsC. no; because the payback period is 2.02 yearsD. no; because the payback period is 3.80 years
题目5单选题
You are considering two independent projects with the same discount rate of 11 percent. Project A costs $284,700 and has cash flows of $75,900, $106,400, and $159,800 for Years 1 to 3, respectively. Project B costs $115,000, and has a cash flow of $50,000 a year for Years 1 to 3. You have sufficient funds to finance any decision you make. Which project or projects, if either, should you accept and whyA. Project A; because it has the larger NPVB. Project B; because its IRR exceeds the discount rateC. both projects; because their NPVs are both positiveD. Project A; because it is the larger-sized project with a positive IRR
题目6单选题
Flo's Flowers has a project costing $40,000 and cash flows of $8,500, $15,600, and $22,700 for Years 1 to 3, respectively. Based on the profitability index rule, should the project be accepted if the discount rate is 9.5 percent? Why or why notA. Yes; because the PI is 1.03B. Yes; because the PI is .95C. No; because the PI is 1.03D. No; because the PI is .95
题目7单选题
Using the internal rate of return method, a conventional investment project should be accepted if the internal rate of return isA. equal to the discount rateB. greater than the discount rateC. less than the discount rateD. negative
题目8单选题
The profitability index of an investment project is the ratio of theA. average net income to the average investmentB. internal rate of return to the current market rate of interestC. net present value of the project's cash outflows divided by the net present value of its inflowsD. present value of the future expected cash flows after initial investment divided by the amount of the initial investment
题目9单选题
The net present value method of capital budgeting analysis does all of the following exceptA. incorporate risk into the analysisB. use all of a project's cash flowsC. discount all future cash flowsD. provide a specific anticipated rate of return
题目10单选题
Which of the following methods of project analysis are biased towards short-term projectsA. profitability index and internal rate of returnB. discounted payback and paybackC. net present value and paybackD. payback and profitability index
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