## Похожие публикации

1. Операции по передаче Учредителем в оперативное управление бюджетному (автономному) учреждениюДокумент

1. Операции по передаче Учредителем в оперативное управление бюджетному (автономному) учреждению особо ценного движимого имущества (ОЦДИ), находившего...полностью>>

Воспитательной работы мбоу сош №83 на осенних каникулах 2013/2014 учебного года

Документ

10 ноября 14.00 ТЮЗ Ивлева Л.А. 5. Выход учащихся в кинотеатр «Киномакс» на просмотр фильма «Сталинград» 8-10 кл....полностью>>

Техническая характеристика (описание) товаров с указанием (ст рк, гост/снип и т д) (на русском языке)

Документ

Диапазон частот не менее 1,0-5,0 МГц, количество элементов не менее 64, угол сканирования не менее 90°. Соответствие к ультразвуковой системе Е-CUBE 9...полностью>>

Гидромассаж «Евростандарт» (6 форсунок)

Документ

Габариты: 1 90*780* 50 Объем до слива-перелива: 380 л. Комплектация: «Оптима» -Акриловая ванна на раме; -Слив-перелив полуавтомат; -Фронтальная панель...полностью>>

# Ranking conflicts Answer: a Diff: E

### MIRR Answer: d Diff: M

^{81}. Alyeska
Salmon Inc., a large salmon canning firm operating out of Valdez,
Alaska, has a new automated production line project it is
considering. The project has a cost of $275,000 and is expected to
provide after-tax annual cash flows of $73,306 for eight years. The
firm’s management is uncomfortable with the IRR reinvestment
assumption and prefers the modified IRR approach. You have
calculated a cost of capital for the firm of 12 percent. What is the
project’s MIRR?

a. 15.0%

b. 14.0%

c. 12.0%

d. 16.0%

e. 17.0%

**MIRR Answer: e Diff: M**

^{82}. Martin
Manufacturers is considering a five-year investment that costs
$100,000. The investment will produce cash flows of $25,000 each
year for the first two years (t = 1 and t = 2), $50,000 a year for
each of the remaining three years (t = 3, t = 4, and t = 5). The
company has a weighted average cost of capital of 12 percent. What
is the MIRR of the investment?

a. 12.10%

b. 14.33%

c. 16.00%

d. 18.25%

e. 19.45%

**MIRR and CAPM Answer: d Diff: M R**

^{83}. Below
are the returns of Nulook Cosmetics and “the market” over a
three-year period:

__Year__ __Nulook__ __Market__

1 9% 6%

2 15 10

3 36 24

Nulook finances internally using only retained earnings, and it uses the Capital Asset Pricing Model with an historical beta to determine its cost of equity. Currently, the risk-free rate is 7 percent, and the estimated market risk premium is 6 percent. Nulook is evaluating a project that has a cost today of $2,028 and will provide estimated cash inflows of $1,000 at the end of the next 3 years. What is this project’s MIRR?

a. 12.4%

b. 16.0%

c. 17.5%

d. 20.0%

e. 22.9%

**MIRR and missing cash flow Answer: d Diff: M**

^{84}. Belanger
Construction is considering the following project._{ }The
project has an up-front cost and will also generate the following
subsequent cash flows:

Project

__Year__ __Cash Flow__

0 ?

1 $400

2 500

3 200

The project’s payback is 1.5 years, and it has a weighted average cost of capital of 10 percent. What is the project’s modified internal rate of return (MIRR)?

a. 10.00%

b. 19.65%

c. 21.54%

d. 23.82%

e. 14.75%

**MIRR, payback, and missing cash flow Answer: d Diff: M**

^{85}. Tyrell
Corporation is considering a project with the following cash flows
(in millions of dollars):

Project

__Year__ __Cash Flow__

0 ?

1 $1.0

2 1.5

3 2.0

4 2.5

The project has a regular payback period of exactly two years. The project’s cost of capital is 12 percent. What is the project’s modified internal rate of return (MIRR)?

a. 12.50%

b. 28.54%

c. 15.57%

d. 33.86%

e. 38.12%

**MIRR and IRR Answer: e Diff: M**

^{86}. Jones
Company’s new truck has a cost of $20,000, and it will produce
end-of-year net cash inflows of $7,000 per year for 5 years. The
cost of capital for an average-risk project like the truck is 8
percent. What is the sum of the project’s IRR and its MIRR?

a. 15.48%

b. 18.75%

c. 26.11%

d. 34.23%

e. 37.59%

**Mutually exclusive projects Answer: b Diff: M**

^{87}. Two
projects being considered by a firm are mutually exclusive and have
the following projected cash flows:

Project A Project B

__Year__ __Cash Flow__ __Cash Flow__

0 -$100,000 -$100,000

1 39,500 0

2 39,500 0

3 39,500 133,000

Based only on the information given, which of the two projects would be preferred, and why?

a. Project A, because it has a shorter payback period.

b. Project B, because it has a higher IRR.

c. Indifferent, because the projects have equal IRRs.

d. Include both in the capital budget, since the sum of the cash inflows exceeds the initial investment in both cases.

e. Choose neither, since their NPVs are negative.

**Before-tax cash flows Answer: b Diff: M**

^{88}. Scott
Corporation’s new project calls for an investment of $10,000. It
has an estimated life of 10 years and an IRR of 15 percent. If cash
flows are evenly distributed and the tax rate is 40 percent, what is
the annual before-tax cash flow each year? (Assume depreciation is a
negligible amount.)

a. $1,993

b. $3,321

c. $1,500

d. $4,983

e. $5,019

### Crossover rate Answer: b Diff: M

^{89}. McCarver
Inc. is considering the following mutually exclusive projects:

Project A Project B

__Year__ __Cash Flow__ __Cash Flow__

0 -$5,000 -$5,000

1 200 3,000

2 800 3,000

3 3,000 800

4 5,000 200

At what cost of capital will the net present value (NPV) of the two projects be the same?

a. 15.68%

b. 16.15%

c. 16.25%

d. 17.72%

e. 17.80%

### Crossover rate Answer: b Diff: M

^{90}. Martin
Fillmore is a big football star who has been offered contracts by two
different teams. The payments (in millions of dollars) he receives
under the two contracts are listed below:

Team A Team B

__Year__ __Cash Flow__ __Cash Flow__

0 $8.0 $2.5

1 4.0 4.0

2 4.0 4.0

3 4.0 8.0

4 4.0 8.0

Fillmore is committed to accepting the contract that provides him with the highest net present value (NPV). At what discount rate would he be indifferent between the two contracts?

a. 10.85%

b. 11.35%

c. 16.49%

d. 19.67%

e. 21.03%

### Crossover rate Answer: b Diff: M

^{91}. Shelby
Inc. is considering two projects that have the following cash flows:

Project 1 Project 2

__Year__ __Cash Flow__ __Cash Flow__

0 -$2,000 -$1,900

1 500 1,100

2 700 900

3 800 800

4 1,000 600

5 1,100 400

At what weighted average cost of capital would the two projects have the same net present value (NPV)?

a. 4.73%

b. 5.85%

c. 5.98%

d. 6.40%

e. 6.70%

## Crossover rate Answer: d Diff: M

^{92}. Jackson
Jets is considering two mutually exclusive projects. The projects
have the following cash flows:

Project A Project B

__Year__ __Cash Flow__ __Cash Flow__

0 -$10,000 -$8,000

1 1,000 7,000

2 2,000 1,000

3 6,000 1,000

4 6,000 1,000

At what weighted average cost of capital do the two projects have the same net present value (NPV)?

a. 11.20%

b. 12.26%

c. 12.84%

d. 13.03%

e. 14.15%

## Crossover rate Answer: c Diff: M

^{93}. Midway
Motors is considering two mutually exclusive projects, Project A and
Project B. The projects are of equal risk and have the following
cash flows:

Project A Project B

__Year__ __Cash Flow__ __Cash Flow__

0 -$100,000 -$100,000

1 40,000 30,000

2 25,000 15,000

3 70,000 80,000

4 40,000 55,000

At what WACC would the two projects have the same net present value (NPV)?

10.33%

13.95%

11.21%

25.11%

14.49%

**Crossover rate Answer: d Diff: M**

^{94}. Robinson
Robotics is considering two mutually exclusive projects, Project A
and Project B. The projects have the following cash flows:

Project A Project B

__Year__ __Cash Flow__ __Cash Flow__

0 -$200 -$300

1 20 90

2 30 70

3 40 60

4 50 50

5 60 40

At what weighted average cost of capital would the two projects have the same net present value (NPV)?

a. 12.69%

b. 8.45%

c. 10.32%

d. 9.32%

e. -47.96%

**Crossover rate Answer: b Diff: M**

^{95}. Turner
Airlines is considering two mutually exclusive projects, Project A
and Project B. The projects have the following cash flows:

Project A Project B

__Year__ __Cash Flow__ __Cash Flow__

0 -$100,000 -$190,000

1 30,000 30,000

2 35,000 35,000

3 40,000 100,000

4 40,000 100,000

The two projects are equally risky. At what weighted average cost of capital would the two projects have the same net present value (NPV)?

a. 3.93%

b. 8.59%

c. 13.34%

d. 16.37%

e. 17.67%

### Crossover rate Answer: b Diff: M

^{96}. Unitas
Department Stores is considering the following mutually exclusive
projects:

Project 1 Project 2

__Year__ __ Cash Flow __ __ Cash Flow __

0 -$215 million -$270 million

1 20 million 70 million

2 70 million 100 million

3 90 million 110 million

4 70 million 30 million

At what weighted average cost of capital would the two projects have the same net present value (NPV)?

a. 1.10%

b. 19.36%

c. 58.25%

d. 5.85%

e. 40.47%