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A perpetuity is an annuify whose term begins on a definite date and ends on a definite date? True or False Two alternative ways to

A perpetuity is an annuify whose term begins on a definite date and ends on a definite date? True or False
Two alternative ways to specily the propotions of the captal structure in calculating the weighted average cost of capital are book value weights and market value weights? True or False
A project with an invesiment of $10,000 has Fet cash flows of $9,000. $3,000, and $1,000 for each of the next three years Compute the net present value of the project at 20 percent
The sinking fund schedule is the retirement of a debt plus its interest by making a set of equal periodic payments. True or False
The entire process of planning expenditures whose benefits are expected to extend beyond one year is known as a captal rationing constraint. True or False
6 Target weights are the proportions of additional funds which the companywants toraise. True or False
The results of post-audits enable the firm to compare the actual performance of a project with established standards. True or False
When the company has a capital rationing constraint, some profitabie projects could be rejected. True or False
Companies usually obtain new investment project ideas with no investment in time and money. True or False
If a project's internal rate of return equals the cost of capital, the project has a zero net present value. True or False
The opportunities for location of a factory in alternate cities could be called mutually dependent projects. True or False
Systematic risk (beta coefficient) is an index of volatility in the excess return of one common stock over that of a market portfolio. True or False.
A project with an investment of $10,000 has net cash flows of $9.000, $3,000, and $1,000 for each of the next three years. Compute the profitability index of the project at 20 percent. True or False
The internal rate of return is the discount rate which will equate the present value of net cash inflows to?
The current price of a bond is the present value of periodic payments plus the present value of its maturity value. True or Faise
16 Different capital budgeting techniques produce the same ranking for a set of investment projects. True or False
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