9. If I have limited capital and have to choose how to create the most value with the money in my budget, which tool will be the most useful in narrowing down which projects to invest in?

a. Net Present Value

b. Internal Rate of Return.

c. Payback.

d. Profitability Index.

10. Which evaluation tool always leads you to the correct decision?

a. Average Accounting Return.

b. Payback.

c. Internal Rate of Return.

d. Net Present Value.

11. Lisa is unable to make it to the shareholders meeting so she gives Mikey the right to vote her shares. Lisa gave Mikey:

a. Premiere voting rights

b. Proxy voting rights.

c. Preferred voting rights.

d. Executive voting rights.

12. The value of any asset is:

a. the sum of the nominal value of all future cash flows.

b. the sum of all future cash flows.

c. the sum of the present value of all future cash flows.

d. the sum of the future value of all future cash flows.

13. If I am a short-term creditor that needs to collect within 30days which of the following is true:

a. as long as the current ratio is 1 I should not be worried.

b. if the current ratio is less than one I will not get my money.

c. should feel good because the cash ratio is 1.

d. none of the above

14. An investor that is living on a fixed income and likes regular payments should invest in:

a. bonds with a high growth rate.

b. bonds with a high dividend yield.

c. bonds with a high capital gains yield.

d. bonds with no growth.

If inflation is positive:

the nominal rate will be the same as the real rate

the real rate will be larger than the nominal rate

the real rate will be lower than the nominal rate.

none of the above