Please give me an all answers that 101 to 107.
Which of the following is a correct definition of a capital budgeting method? Real option analysis is the ratio of payoff to investment of a proposed project. The profitability index is the time required for an investment to "repay the original investment. Equivalent annuity method essentially value projects as if they were risk bonds. The internal rate of return is the discount rate that gives a net present value of zero Which of the following is a function of corporate capital budgeting? To evaluate the performance of managers To rank projects by profitability. To encourage managers to consider problems before they arise. All of these answers. A company is analyzing a variety of potential investments using different capital budgeting methods. Which of the following represents the most profitable choice based on the information provided? The company picks a project with an accounting rate of return 5% over one with an ARR of3%. The company picks a project with a 5 yca payback period over one with a 3 year payback period. The company picks a project with an NPV of $250,000 over one with an NPV of $300,000 The company picks a project with profitability index of 1.25 over a project with a PI of-.25 A firm is trying to choose the most profitable project to invest in. Which of the following should be used as the company's discount rate? The company's reinvestment rate The company's profitability index. The company's internal rate of return. The company's weighted average cost of capital. A company needs to obtain short-term financing due to an unexpected event. Which of the following options should it NOT pursue to meet its financial needs? obtaining an asset-based loan- Issuing corporate bonds. issuing commercial paper. Entering into a repurchase agreement. Which of the following is the best reason to use the payback method to evaluate investments? If you use the payback method, you do not need to perform additional analyses. The payback method covers all cash inflows and outflows for the duration of the investment. The payback method is easy to use and understand for most people, regardless of training. The payback method helps gauge a project's risk. Calculate the detailed modified payback period for a project with a discount rate of 5% the following cash flows: Year 0: -$2000 Year 1: $ 1000 Year Year 2:$1000Year 3: $1000 Year 4: $3000 Year 5: $2000 3.44 years. 3.56 years. 4 years. 4-44 years
