财务管理 试题8.pdfVIP

Chapter8:NetPresentValueandOtherInvestmentCriteria

CHAPTER8

NetPresentValueandOtherInvestmentCriteria

I.DEFINITIONS

Topic:NETPRESENTVALUE

1.Thedifferencebetweenthemarketvalueofaninvestmentanditscostisthe:

A)Netpresentvalue.

B)Internalrateofreturn.

C)Paybackperiod.

D)Profitabilityindex.

E)Discountedpaybackperiod.

Answer:A

Topic:DISCOUNTEDCASHFLOWVALUATION

2.Theprocessofvaluinganinvestmentbydeterminingthepresentvalueofitsfuturecashflowsiscalled

(the):

A)Constantdividendgrowthmodel.

B)Discountedcashflowvaluation.

C)Averageaccountingvaluation.

D)Expectedearningsmodel.

E)CapitalAssetPricingModel.

Answer:B

Topic:NETPRESENTVALUERULE

3.Thenetpresentvalue(NPV)rulecanbebeststatedas:

A)Aninvestmentshouldbeacceptedif,andonlyif,theNPVisexactlyequaltozero.

B)AninvestmentshouldberejectediftheNPVispositiveandacceptedifitisnegative.

C)AninvestmentshouldbeacceptediftheNPVispositiveandrejectedifitsisnegative.

D)Aninvestmentwithgreatercashinflowsthancashoutflows,regardlessofwhenthecashflows

occur,willalwayshaveapositiveNPVandthereforeshouldalwaysbeaccepted.

Answer:C

Topic:PAYBACK

4.Thelengthoftimerequiredforaninvestmenttogeneratecashflowssufficienttorecoveritsinitialcost

isthe:

A)Netpresentvalue.

B)Internalrateofreturn.

C)Paybackperiod.

D)Profitabilityindex.

E)Discountedpaybackperiod.

Answer:C

186Ross/Westerfield/Jorda