Question
1.If an investments net present value is zero, then it's IRR must also be zero. Select one: a. TRUE b. FALSE 2.Todd Arnold deposits $2000
1.If an investments net present value is zero, then it's IRR must also be zero.
Select one:
a. TRUE
b. FALSE
2.Todd Arnold deposits $2000 in a savings account that compounds at 8% annually. How much will he have in 10 years? (Round to the nearest dollar).
Select one:
a. $4306
b. $4300
c. $4318
d. $4377
3.Capital gains are tax consequences of the sale of an old asset if
Select one:
a. The asset is sold for any amount other than the book value
b. the asset is sold for less than the book value
c. The asset is sold for more than the book value
d. The future depreciation is not lost
e. The future depreciation is lost
4.Qualitative considerations are as important as cash flow in investment decisions.
Select one:
a. TRUE
b. FALSE
5.John Guy is saving for a new boat. He needs $60,000. How much money should he put in a savings account that compounds at 8% to have $60,000? (Round to the nearest dollar).
Select one:
a. $36,410
b. Unable to determine from data given
c. $38,706
d. $39,420.
6.Unless an addition to working capital is permanent, it should not be considered among the cash flows of a capital budget.
Select one:
a. TRUE
b. FALSE
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