19.The time-dependent economic value of money stemming from both changes in the purchasing power of money arising from either inflation or deflation and from the real earning potential of alternative investment over time is referred to as a A. Purchasing Power Parity B. Time Value of Money C. Economic Value of Money D. Real Value of Money 20. The yield that is maximum interest rate that could be paid on borrowed capital assuming that all the capital needed to fund the construction project is acquired as an overdraft is referred to as....? A. Dividend Yield B. Discounted Cash Flow Yield C. Hurdle Rate Yield D. Annual Rate Yield 21. A Building Contractor wants to analyse the predicted profitability of a project that required an initial capital outlay of GHC45,000. Over the course of three years, the project is expected to generate revenues of GHC15,000; GHC18,000 and GHC22,000 respectively. The anticipated discount rate is 5%. Calculate the NPV to determine profitability on the account of discounted time value of the projected revenues. A. GHC4,563 B. GHC4,614 C. GHC4,608 D. GHC4,626 22. In the modern finance theory, Modigliani and Miller overturned the traditional view of capital structure and made propositions based on a perfect market assuming that value of a firm is unaffected by the choice of capital structure. Which of the following is NOT part of their proposition? A. The total market value of any company is independent of its capital structure. B. The total market price of equity is independent of company value C. The expected rate of return on equity increases proportionally with the gearing ratio D. The cut off rate of return for new projects is equal to the Weighted Average Cost of Capital 23. A company's shares on the capital market trades at GHC14.25 and the dividend per share is GHC1.85 net per share. However its equity beta is 1.92 and the current return on the Treasury bill is 17% but the market return is 23%. Using the Capital Assets Pricing Model (CAPM), what will be the cost equity capital of the company? A. 11.52% B. 16.52% C. 28.52% D. 61.16% 24. The economic assessment techniques useful for the economic comparison of long-duration construction methods and the choice between plant items are.... A. Present Worth and Equivalent Annual Cost techniques B. Multi Criteria Analysis and Scenario Analysis C. Cost-Benefit Analysis and Sensitivity Analysis D. Organisational Analysis and Stakeholder Analysis 25. What will be the terminal value of GHC10,000 invested for 5years at an interest of 6.9% compounded quarterly in a year. A. GHC14,004.82 P-Bl Page 4 o 14.15+1.12 (17)