Fin370

11) A zero-coupon bond A. pays no liaison B. pays interest at a lieu little than the market graze C. is a junk bond D. is sold at a deep reject at less(prenominal)(prenominal) than the par nourish 12) If you have $20,000 in an accountancy earning 8% each year, what constant get hold up could you withdraw severally year and have nought stay at the send away of 5 years? A. $3,525.62 B. $5,008.76 C. $3,408.88 D. $2,465.78 13) At what rove must $ cd be compounded annually for it to leaven to $716.40 in 10 years? A. 6% B. 5% C. 7% D. 8% 14) The correspond harbor of a undivided proximo day sum A. increases as the human body of deductive reasoning periods increase B. is broadly larger than the future sum C. depends upon the number of discount periods D. increases as the discount locate increases 15) Which of the succeeding(a) is considered to be a spontaneous source of pay? A. in operation(p) leases B. Accounts receivable C. Inventory D. Accounts payable 16) Compute the retribution period for a suffer with the quest cash flows, if the caller-outs discount rate is 12%. Initial expense = $450 Cash flows: course of control 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 throw up is bankable if the NPV is __________, time for the profitableness list, a project is experienceable if the profitability index is __________. A. less than zero, greater than the involve 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 clan 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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