1.A firm normally gives 35 days credit to its customers. It is considering a 3% discount for payment on the 10th day of invoice. Calculate the cost on an annual basis and select the correct answer

a. 66%

b. 56%

c. 42.22%

d. 76%

2.The typical featured of a 'rights' issue are:

a. issue offered to the public at a discount

b. issue open to members of the public at market place

c. issue offered to existing shareholders at market place

d. issue offered to existing shareholders at a discount to market place

3.Which of the following is attributable to sensitivity analysis:

select one:

a. Allows to estimate the extend to which variables can change before the decision to accept switches to a decision to reject

b. Sensitivity analysis provides clears decision rules on how sensitive is NPV to the ARR of an investment project

c. Allows to measure the expected return

d. Does not take into account all the cash flow