## Solution Library

#### Investment Decisions Based on Net Present Value-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): Accept-project even if NPV a) True b) False     ... Read More

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#### Investment Decisions Based on Net Present Value-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): Reject-project even if NPV>0:    if the value of the additional negative-factors (real-obligations, negative-externalities, negative-extralities, taxation, pollution-penalties, public ba ... Read More

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#### Investment Decisions Based on Internal Rate of Return-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): IRR is the discount rate at which NPV=0 a) True b) False     ... Read More

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#### Formulation of Rate of Return-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): RoR = -1 + (VT/K0)(1/T) a) True b) False     ... Read More

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#### Formulation of Present Value of Cash Flows-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): PV = sum of the discounted cash flows a) True b) False       ... Read More

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#### Formulation of Future Value of Cash Flows-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): FV = sum of the reinvestment values of cash flows a) True b) False       ... Read More

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#### When Investors Accept Lower Returns on their Investments-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): Due to synergy (economies of scale incubated through merger) the merged Firm-AB would have greater levels of growth rates, lower levels of shrinkage rates, greater levels of probability of growth, lower l ... Read More

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#### Efficient Working Capital Management-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): Efficient working capital management is a key to success - a company must have sufficient cash flow in order to meet its short-term debt obligations and operating expenses. Swaps are a vehicle for reducin ... Read More

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#### Formulation of Weighted Average Cost of Capital-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): WACC = r = wd* rd(1-t) + wp*rp + wd* rc a) True b) False       ... Read More

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#### Formulation of Capital Asset Pricing Model-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): CAPM:    Ri -Rf = a + b(Rm-Rf) a) True b) False     ... Read More

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#### Formulation of Arbitrage Pricing Theory-Multiple Choice Question

Question Indicate as to whether the following statements are correct (yes) or incorrect (no): APT:   Ri -Rf = a + b1X1+ b2X2+ b3X3+…+ bnXn a) True b) False     ... Read More