1 Which of the following exchanges has the strictest listing requirements? A AMEX B OTC C NYSE D Nasdaq 2 Errors in capital budgeting decisions: A tend to average out over time. B are easily reversed. C decrease the firm's value. D are diminished because the time value of money makes future cash flows less important. 3 Which of the following factors is least important to capital budgeting decisions.? A The time value of money B Cash flows directly resulting from the decision C The risk-return tradeoff D Net income based on accrual accounting principles 4 Good capital investment opportunities are most likely to exist when: A interest rates are high and rising. B a line of business is expensive to enter and uses proprietary technology. C many firms compete to sell similar products. D goods and services can be produced cheaply using readily available tools and technologies. 5 Central Mass Ambulance Service can purchase a new ambulance for $200,000 that will provide an annual net cash flow of $50,000 per year for five years. Calculate the NPV of the ambulance if the required rate of return is 9%. (Round your answer to the nearest $1.) A $50,000 B $(5,517) C $(5,061) D $5,517