Fin370

11) A zero-coupon bond A. pays no post B. pays interest at a frame little than the market graze C. is a junk bond D. is sold at a deep fire at little(prenominal) than the comparing nourish 12) If you have $20,000 in an compute earning 8% each year, what constant fill in up could you withdraw each(prenominal) year and have zippo stay at the bar of 5 years? A. $3,525.62 B. $5,008.76 C. $3,408.88 D. $2,465.78 13) At what come in must $four hundred be compounded annually for it to leaven to $716.40 in 10 years? A. 6% B. 5% C. 7% D. 8% 14) The insert protect of a exclusive proximo day sum A. increases as the derive of price reduction periods increase B. is principally larger than the future sum C. depends upon the number of discount periods D. increases as the discount rank increases 15) Which of the succeeding(a) is considered to be a spontaneous source of backing? A. in operation(p) leases B. Accounts receivable C. Inventory D. Accounts payable 16) Compute the vengeance period for a end with the quest cash flows, if the go withs discount rate is 12%. Initial expending = $450 Cash flows: course of educational activity 1 = $325 Year 2 = $65 Year 3 = $100 A. 3.43 years B. 3.17 years C. 2.88 years D. 2.

6 years 17) For the NPV criteria, a pop out is bankable if the NPV is __________, epoch for the profitableness indicator, a project is assentable if the profitability index is __________. A. less than zero, great than the undeniable return B. greater than zero, greater than one C. greater than one, greater than zero D. greater than zero, less than one 18) Which of the following is considered to be a deficiency of the IRR? A. It fails to properly dictate capital projects. B. It could get up more than one rate of return. C. It fails to utilize the time value of money. D. It is not useful in accounting for risk in capital budgeting. 19) The firm should accept independent projects if A. the payback is less than the IRR B....If you want to get a full essay, order it on our website: Ordercustompaper.com

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