Given the following net cash flows, determine the IRR of the project: (to the nearest whole percent) Time Net Cash Flow 0 $1,520 1 -$1,000 2 -$1,500 3 $500 A) 36% B) 32% C) 28% D) 24% E) 20% ANSWER D
Date: September 19th, 2020
At an interest rate of 10% it will take approximately how many years to double your investment? A) Less than five years B) Between 7 and 8 years C) Between 9 and 10 years D) More than 10 years ANSWER B
Date: September 19th, 2020
In the economic field of agency theory, which one of the following is viewed as an agent with the principals who are most importantly the firm’s shareholders? A) suppliers B) employees C) managers D) attorneys ANSWER Answer: C
Date: September 19th, 2020
An annuity is A) a sum received in the future. B) a sum earned in the future but received now. C) a series of unequal payments. D) a series of equal payments. ANSWER D
Date: September 19th, 2020
State-owned investment funds that manage global portfolios of investment assets are known as A) hedge funds. B) sovereign wealth funds. C) city-state pensions. D) multinational mutual funds. ANSWER Answer: B
Date: September 19th, 2020
A firm is evaluating two independent projects utilizing the internal rate of return technique. Project X has an initial investment of $80,000 and cash inflows at the end of each of the next five years of $25,000. Project Z has a initial investment of $120,000 and cash inflows at the end of each of the […]
Date: September 19th, 2020
With an interest rate of 9%, $5,000 will grow to $10,000 in approximately A) 8 years. B) 4 years. C) 12 years. D) 24 years. ANSWER A
Date: September 19th, 2020
The main resources of the International Monetary Fund are provided by A) the members of the World Bank. B) its member countries primarily through payments of quotas. C) members of the Organization for Economic Cooperation and Development. D) the Bank for International Settlements. ANSWER Answer: B
Date: September 19th, 2020
In 1992, the European Union decided to create an economic as well as a monetary union involving the introduction of A) a pegged currency known as the euro. B) a managed currency know as the ecu. C) a freely floating exchange rate for a currency known as the euro. D) a single European currency managed […]
Date: September 19th, 2020
Two projects being considered by a firm are mutually exclusive and have the following projected cash flows: Year Project A Project B 0 -$100,000 -$100,000 1 $39,500 0 2 $39,500 0 3 $39,500 $133,000 Which project(s) should be accepted? A) A, because it has a shorter payback period. B) B, because it has a higher […]
Date: September 19th, 2020
