Finance and accounting exercises:

Please explain to me regarding the following questions:

1 The length of time required for a project's discounted cash flows to equal the initial cost of the project is called the:

A discounted payback period.

B internal rate of return.

C net present value.

D discounted profitability index.

E payback period.

2 The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the:

A internal rate of return.

B profitability index.

C discounted cash period

D net present value.

E payback period.

3 You are considering a project with the following data: Internal rate of return 8.7% Profitability ratio .98 Net present value -$393 Payback period 2.44 years Required return 9.5%

Q. Which one of the following is correct given this information?

A The discounted payback period will have to be less than 2.44 years.

B The discount rate used to compute the profitability ratio was equal to the internal rate of return.

C This project should be rejected based on the internal rate of return.

D This project should be accepted based on the profitability ratio.

E The discount rate used in computing the net present value must have been less than 8.7%.

4 The internal rate of return (IRR):

I. rule states that a typical investment project with an IRR that is less than the required rate should be accepted. II. is the rate generated solely by the cash flows of an investment. III. is the rate that causes the net present value of a project to exactly equal zero. IV. can effectively be used to analyze all investment scenarios.

A II and III only

B II, III, and IV only

C I, II, III, and IV

D I and IV only

E I, II, and III only

5Amazon is the biggest e-commerce store, but Amazon also offers different data storage and management services.Can you list the different services Amazon provides in this field?