urgentt please 1.

Which one of the following statements regarding the cost of capital is false?

Select one:

a. If a potential investment will yield a return that is less than the cost of capital, it should be accepted.

b. The cost of capital is often used as the discount rate in investment decisions.

c. The cost of a capital incorporates a companys cost of debt (rate paid to lenders) and the cost of equity (rate paid to shareholders)

d. The cost of capital is referred to as the minimum rate of return that investors expect from a capital expenditure.

2.

The net present value method:

Select one:

a. compares the present value of the cash inflows of an investment with the present value of the cash outflows

b. compares the future value of the cash inflows of an investment with the present value of the cash outflows

c. compares the future value of the cash inflows of an investment with the future value of the cash outflows

d. compares the present value of the cash outflows of an investment with the future value of the cash inflows

3.

The profitability index is useful for comparing:

Select one:

a. Investment alternatives of similar amount.

b. Investment alternatives requiring significantly different initial investments and discounted cash flows.

c. Investment alternatives of similar risk levels.

d. Investment alternatives spanning different industries.

4.

Which one of the following statements regarding the payback technique is false?

Select one:

a. It is a non-discounted capital budgeting approach

b. It measures the length of time it takes a business to recover the initial investment from cash generated by the investment

c. The longer the payback period, the sooner the manager gets their money back

d. It is a tool that can be used to decide whether to accept or reject a project.

5.

Capital Budgeting would be useful for all of the investment decisions listed below except for:

Select one:

a. Expansion

b. Equipment selection

c. Equipment replacement

d. Deciding whether to hire a full-time or a part-time employee for a summer season.

6.

f you are to receive payments of $2,000 annually for five consecutive years, what is the present value of the total payments assuming that the interest rate is 9%?

Select one:

a. $6,499.00

b. $1,299.80

c. $8,205.50

d. $7,779.30

7.

Choosing a supplier because the CEO of the supplier company is friends with your companys CEO is unethical.

Select one:

True

False

8.Suppose that a new hotel requires the purchases of assets requiring an initial investment of $550,000. These assets will have a residual value of $50,000 at the end of their useful life. The average annual income arising from this investment will be $38,000. What is the accounting rate of return for the project?

Select one:

a. 3.3%

b. 12.7%

c. 16%

d. 7.9%

Question 9

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Question text

Suppose that a restaurant requires an initial investment of $150,000. It also generates annual net cash flows for the next three years of $120,000 (in year 1), $30,000 (in year 2) and $15,000 (in year 3). What is the payback period?

Select one:

a. Three years

b. More than three years

c. Two years

d. One year

10.

The internal rate of return (IRR) is:

Select one:

a. the discount rate when the NPV is equal to zero

b. the discount rate when operating income is positive

c. the discount rate when the CVP is zero

d. the required rate of return