1) What is the payback period of a micro-sprinkler irrigation system that costs $60,000 and has returns of: $25,000 in year one, $20,000 in year two, $15,000 in year three, and $10,000 in year four? All cash outflows occur at the end of the year.

a.1 year

b.2 years

c.3 years

d.4 years

2) Pro-forma financial statements are

a.Set up in advance

b.Set up on a computer

c.Set up by CPAs according to GAAP

d.Set up using IRS Fillable Forms

3) Refinancing could include...?

a.Bigger down payments to reduce interest cost

b.Longer maturities for existing loans

c.Producing certified organic products to improve revenue

d.Buying in the off-season

4) Financial management is most closely related to

a.Auditing financial statements

b.Supervising employees

c.Protecting equity capital from risk

d.Effectively managing a bank or other financial business