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Please fill all the blanks, from 7.1-7.6 than you in advance Question 7 fill in the blanks with the appropriate term(s). For questions that give

Please fill all the blanks, from 7.1-7.6 than you in advance image text in transcribed
Question 7 fill in the blanks with the appropriate term(s). For questions that give you two or three choices to choose from, circle the most appropriate (7.1) PV analysis of an investment specifies that it is future cash inflows is if the PV of future cash inflows is if the PV of the the cash outlay: the investment is the cash outlay. (2 points) (72) The NPV of an asset equals the difference between the PV of the future produced by an asset and theof the asset. An investment is acceptable if its NPV . The NPV of sAn investment is unacceptable if its NPV is of the firm if an asset measures the which accrues to the the asset is acquired. Thus, the use of the NPV rule is consistent with the financial manager's goal of maximizing the of the firm's common stock. (2 points) (7.3) The IRR is the rate of return (or discount rate) which equates the The of the future for an investment with its An IRR is the rate of return which equates the NPV of an investment to investment is the financial markets on investment of equal risk; an investment project is if the IRR is less than the relevant rate of retun in the financial markets. (2 points) if the IRR exceeds the rate of return that could be earned in (7.4) A __ _ _ _ is the impact that a given capital budgeting project might have on cash flows in another area of the firm. These changes in cash flows (are/are not) incremental cash flows for the project under construction. (2 points) and (7.5) The bottom-up approach accentuates the relationship between OCF. In this approach OCF (2 points) (7.6) The top-down approach defines operating cash flow as follows: OCF points) (2

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