公司理财 习题库 Chap010.docVIP

CHAPTER 10 Making Capital Investment Decisions I. DEFINITIONS INCREMENTAL CASH FLOWS a 1. The changes in a firm’s future cash flows that are a direct consequence of accepting a project are called _____ cash flows. a. incremental b. stand-alone c. after-tax d. net present value e. erosion STAND-ALONE PRINCIPLE b 2. The evaluation of a project based solely on its incremental cash flows is the basis of the: a. incremental cash flow method. b. stand-alone principle. c. dividend growth model. d. after-tax salvage value analysis. e. discounted payback method. SUNK COSTS c 3. A cost that has already been paid, or the liability to pay has already been incurred, is a(n): a. salvage value expense. b. net working capital expense. c. sunk cost. d. opportunity cost. e. erosion cost. OPPORTUNITY COSTS d 4. The most valuable investment given up if an alternative investment is chosen is a(n): a. salvage value expense. b. net working capital expense. c. sunk cost. d. opportunity cost. e. erosion cost. EROSION COSTS e 5. The cash flows of a new project that come at the expense of a firm’s existing projects are called: a. salvage value expenses. b. net working capital expenses. c. sunk costs. d. opportunity costs. e. erosion costs. PRO FORMA FINANCIAL STATEMENTS a 6. A pro forma financial statement is one that: a. projects future years’ operations. b. is expressed as a percentage of the total assets of the firm. c. is expressed as a percentage of the total sales of the firm. d. is expressed relative to a chosen base year’s financial statement. e. reflects the past and current operations of the firm. MACRS DEPRECIATION b 7. The depreciation method currently allowed under US tax law governing the accelerated write-off of property under various lifetime classifications is called _____ depreciation. a. FIFO b. MACRS c. straight-line d. sum-of-years digits e. curvilinear DEPRECIATION TAX SHIELD c 8. The cash flow tax savings generated as a result of a f