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Project S and L have the following cash flow 0 -$800 2 $600 $200 $150 3 $150 $400 $100 $500 L -$800 S300 If 8%

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Project S and L have the following cash flow 0 -$800 2 $600 $200 $150 3 $150 $400 $100 $500 L -$800 S300 If 8% cost of capital is appropriate for projects, what is its NPVp Poin A. $109.6 B. $1,200 C. $119.6 $281.14 D. $560 If 8% cost of capital is appropriate for project L, what is its NPV? E. $271.14 F. $1,200 G. $281.14 H. $600 is the value today of a future cash flow or series of cash 1 flows. (1 Point) A. Present value B. Future value C. Compounding D. Discounting You have 2 investment projects and you need to choose only one project. Both projects have the same discount rate and time horizon. Project A has NPV- SR100,000 while Project B has NPV SR50,000. Which project is better for your company? (1 Point) 22. A. Project A B. Project B C. Both projects D. None of the above 23. .. occurs when interest is NOT earned on interest. (1 Point) A. Compound interest B. Future value C. Simple interest D. Present value 24................. s an annuity whose payments occur at the end of each period, while........ is an annuity whose payments occur at the beginning of each period. (1 Point) A. Ordinary annuity, annuity due B. annuity due, ordinary annuity C. all of the above D. None of the above 2.. is the process of planning expenditures on assets with cash flows that are expected to extend beyond one year. (1 Point) A. Capital structure B. Capital budgeting C. Discount rate D. all of the above sing Present value to calculate future value is called 9. A. Discounting B. Compounding C. Multiplying D. None of the above 1 Polnt) z0. o.Using future value to calculate present value is called .(1 Point) A. Discounting B. Compounding C. Multiplying D. None of the above is the value today of a future cash flow or series of cash flows. (1 Point) A. Present value B. Future value C. Compounding D. Discounting 22.You have 2 investment projects and you need to choose only one project. Bo NPV- projects have the same discount rate and time horizon. Project A bas SR100,000 while Project B has NPV SR50,000. Which project is better your company? (1 Point) A. Project A B. Project B C. Both projects D. None of the above 23..... occurs when interest is NOT earned on interest.(1 A. Compound interest B. Future value C. Simple interest D. Present value

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