Q1 Which of the following is an element of capital budgeting?

a. Identify potential investments

b. Select investments to be undertaken

c. Monitor the selected investments

d. All of the above

Q2 Which of the following sources of capital are used to calculate the weighted average cost of capital (WACC)?

a. Accounts Receivable

b. Preferred and Common stock

c. Cash

d. All of the above

Q3 $100 received 3 years from now, at a discount rate of 10%, has a present value of approximately?

a.$71

b. $73

c. $75

d. $83

Q4 $100 received 20 years from now, at a discount rate of 15%, has a present value of approximately?

a. $6

b. $9

c. $12

d. $14