1. Question : Net present value (NPV) is best defined as:
Question 2. Question : The payback period has several weaknesses. From the list below, identify the item that is NOT necessarily a weakness of the payback period method.
Question 3. Question : The key to successful capital budgeting is to:
Question 4. Question : The typical corporate investment requires a large cash outlay followed by several years of cash inflows. To make these cash flows comparable, we do which of the following?
Question 5. Question : A benefit of debt financing is that:
Question 6. Question : To determine incremental cash flows, we apply the with-and-without principle, which compares:
Question 7. Question : You receive an annual raise of $4,000. If you tax rate is 22%, how much will this increase your after-tax earnings?
Question 8. Question : In perfect capital markets, the capital structure decision is:
Question 9. Question : Which of the following is a problem associated with bankruptcy?
Question 10. Question : If depreciation expense is a noncash charge, why do we consider it when determining cash flows?