You have determined the profitability of a planned project by finding

1.Which of the following is NOT a valid method of modifying cash flows to produce a MIRR?选项： A:Discount all of the negative cash flows to time 0 and leave the positive cash flows alone. ; B:Leave the initial cash flow alone and compound all of the remaining cash flows to the final period of the project.; C:Discount all of the negative cash flows to the present and compound all of the positive cash flows to the end of the project.; D:Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.

2.Which of the following is NOT a valid method of modifying cash flows to produce a MIRR? A: Discount all of the negative cash flows to time 0 and leave the positive cash flows alone. B: Leave the initial cash flow alone and compound all of the remaining cash flows to the final period of the project. C: Discount all of the negative cash flows to the present and compound all of the positive cash flows to the end of the project. D: Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.

3.Which of the following statements about NPV and IRR is least accurate 选项： A、The IRR is the discount rate that equates the present value of the cash inflows with the present value of outflows. B、For mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the analyst should use the IRR to select the project. C、The NPV method assumes that cash flows will be reinvested at the cost of capital, while IRR method assume that cash flows are reinvested at the IRR.

4.Which of the following statements generally apply to the cash flows of a financing type project? 选项： A、nonconventional cash flows B、 cash outflows exceed cash inflows prior to any time value adjustments C、 the total of all cash flows must equal zero on an unadjusted basis D、cash for services rendered is received prior to the cash that is spent providing the services

5.Which of the following accurately defines the internal rate of return (IRR)? 选项： A:The average annual profit from an investment expressed as a percentage of the investment sum; B:The discount rate (%) at which the net present value of the cash flows from an investment is zero ; C:The net present value of the cash flows from an investment discounted at the required rate of return; D:The rate (%) at which discounted net profits from an investment are zero

6. Which of the following statement about internal rate of return is not correct ? 选项： A:The average annual profit from an investment expressed as a percentage of the investment sum ; B:The discount rate at which the net present value of the cash flows from an investment is zero. ; C:The net present value of the cash flows from an investment discounted at the required rate of return ; D: The rate at which discounted net profits from an investment are zero.

7. Which of the following statements is FALSE?选项： A:The equivalent value of two cash flows at two different points in time is sometimes referred to as the time value of money.; B: A dollar today and a dollar in one year are not equivalent.; C:If you want to compare or combine cash flows that occur at different points in time, you first need to convert the cash flows into the same units or move them to the same point in time.; D:Finding the present value and compounding are the same.

8.Project X has cash flows of $8,500, $8,000, $7,500, and $7,000 for Years 1 to 4, respectively. Project Y has cash flows of $7,000, $7,500, $8,000, and $8,500 for Years 1 to 4, respectively. Which one of the following statements is true concerning these two projects given a positive discount rate? (No calculations needed. 选项： A: Both projects have the same future value at the end of Year 4. B: Both projects have the same value at Time 0. C: Both projects are ordinary annuities. D: Project Y has a higher present value than Project X. E: Project X has both a higher present and a higher future value than Project Y.Difficulty: 1 EasyTopic: Present value - multiple cash flowsLearning Objective: 06-01 Determine the future and present value of investments with multiple cash flows.

9.Which of the following is true about perpetuities? 选项： A、All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher. B、All else equal, the present value of a perpetuity is higher when the interest rate is lower. C、 If two perpetuities have the same present value and the same interest rate, they must have the same cash flows. D、All of the above are true statements.

10.The statement of cash flows reports all of the following except_____________.选项： A:cash flows from operating activities; B:cash flows from investing activities; C:cash flows from financing activities; D:the net increase or decrease in assets for the period reported; E:the net increase or decrease in cash for the period reported

11.Which of the following statements are correct? (1) The sensitivity of a project variable can be calculated by dividing the project net present value by the present value of the cash flows relating to that project variable (2) The expected net present value is the value expected to occur if an investment project with several possible outcomes is undertaken once (3) The discounted payback period is the time taken for the cumulative net present value to change from negative to positive 选项： A:1 and 2 only; B:1 and 3 only; C:2 and 3 only; D:1, 2 and 3

12.MCQ-05785Which of the following statements about investment decision models is true? 选项： A: The discounted payback rate takes into account cash flows for all periods . B: The payback rule ignores all cash flows after the end of the payback period . C: The net present value model says to accept investment opportunities when their rates of return exceed the company's incremental borrowing rate . D: The internal rate of return rule is to accept the investment if the opportunity cost of capital is greater than the internal rate of return .

13.The present value of an investment's future cash flows divided by the initial cost of the investment is called the: （）选项： A:net present value B:internal rate of return C:average accounting return D:profitability index

14.Which, if any, of the following items could be included in 'cash flows from financing activities' in a statement of cash flows that complies with IAS7 Statements of Cash Flows?选项： A:Interest received; B:Taxation paid; C:Proceeds from sale of property; D:None of them

15.When a foreign project is analyzed from the parent's point of view, the additional risk that stems from it "foreign" location is typically measured by _________ or ________. 选项： A、adjusting the timing; adjusting the cash flows B、adjusting the discount rates; adjusting the cash flows C、adjusting the discount rates; adjusting the timing D、none of the above

16.What is present value analysis, and how is it related to future cash flows?

17.The fact that a proposed project is analyzed based on the project's incremental cash flows is the assumption behind which one of the following principles? 选项： A: Underlying value principle B: Stand-alone principle C: Equivalent cost principle D: Salvage principle E: Fundamental principleDifficulty: 1 EasyTopic: Project analysis and evaluationLearning Objective: 10-01 Determine the relevant cash flows for a proposed project.

18.How would a stock split be reported on the statement of cash flows A stock split would:（）选项： A、be reported as a use of cash in the cash flows from financing. B、be reported as a source of cash in the cash flows from investing. C、not be reported on the statement of cash flows because it is a non-cash event.

19.If a project has a net present value equal to zero, then: 选项： A:the total of the cash inflows must equal the initial cost of the project.; B:the project earns a return exactly equal to the discount rate.; C:a decrease in the project's initial cost will cause the project to have a negative NPV.; D:the project's PI must be also be equal to zero.

20.If a project has a net present value equal to zero, then: 选项： A: the total of the cash inflows must equal the initial cost of the project. B: the project earns a return exactly equal to the discount rate. C: a decrease in the project's initial cost will cause the project to have a negative NPV. D: any delay in receiving the projected cash inflows will cause the project to have a positive NPV. E: the project's PI must also be equal to zero.Difficulty: 1 EasyTopic: Net present valueLearning Objective: 09-01 Show the reasons why the net present value criterion is the best way to evaluate proposed investments.