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71.What the payback period of the proposed Swerling Company project? a.1.28years b.2.28

Question : 71.What the payback period of the proposed Swerling Company project? a.1.28years b.2.28 : 1404079

 

71.What is the payback period of the proposed Swerling Company project?

a.1.28years

b.2.28 years

c.3.28 years

d.4.28 years

72.What is the net present value of the proposed Swerling Company project if the discount rate is 6%?

a.$572

b.$1,572

c.$10,572

d.$100,572

73.What is the profitability index of the proposed Swerling Company project if the discount rate is 6%?

a..03

b.1.03

c.2.03

d.3.03

74.What is the IRR of the proposed Swerling Company project?

a.9.57%

b.8.35%

c.7.72%

d.6.91%

75.What is the discounted payback period of the proposed Swerling Company project if the discount rate is 6%?

a.6.89 years

b.5.89 years

c.3.89 years

d.4.89 years

76.What is the profitability index of the proposed Swerling Company project if the discount rate is 6%?

a..03

b.1.03

c.2.03

d.3.03

77.Which of the following statements is false?

a.Ideas for investment projects stem mainly from the firm's finance department.

b.Capital projects by their nature are easily reversible.

c.Once a capital project is approved, the role of a financial manager is non-existent.

d.all of the above statements are false.

e.Only (b) and (c) are false

78.Financial managers prefer a capital budgeting technique with which of the following characteristics?

a.Easily-applied and considers cash flows

b.Recognizes the time value of money and accounts for risk and return

c.When applied leads to higher stock prices

d.all of the above

e.(a) and (b) only

79.When evaluating different capital budgeting techniques such as payback, net present value, internal rate of return, profitability index and accounting rate of return,

a.all techniques are equal and there is no reason to prefer one technique over another.

b.some techniques have advantages over others.

c.corporate managers have "stuck with" the same techniques over the last thirty years.

d.both (a) and (b)

e.all of the above

80.Which of the following is not a "con" of the Accounting Rate of Return method?

a.The method makes no adjustment for the time value of money or project risk.

b.The depreciation method used impacts both the numerator and denominator.

c.It focuses on net income rather than a company's ability to generate cash.

d.The choice of the hurdle rate is arbitrary.

e.All of the above are cons of the Accounting Rate of Return method.

 

 

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