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1. Summer 2014-FIN 221-Corporate Finance-Section ONL


2. Assessments

3. Review Test Submission: Chapter 12 Introductory Exercise



Summer 2014-FIN 221-Corporate Finance-Section ONL

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Review Test Submission: Chapter 12 Introductory
Exercise

User Samantha Siau
Course Summer 2014-FIN 221-Corporate Finance-Section ONL
Test Chapter 12 Introductory Exercise
Started 7/29/14 3:40 AM
Submitted 7/29/14 3:44 AM
Due Date 7/29/14 11:45 PM
Status Completed
Attempt Score 6 out of 6 points
Time Elapsed
Results Displayed Submitted Answers, Correct Answers
Question 1
1 out of 1 points




Which of the following should be used in determining a potential project's operating cash flow?

Selected Answer:
d.
All of the above
Correct Answer:
d.
All of the above


Question 2
1 out of 1 points




How many years should be used to find the extended net present value for two repeatable mutually
exclusive projects with a 3-year and 4-year life?

Selected Answer:
d.
12
Correct Answer:
d.
12


Question 3
1 out of 1 points




What are the different type(s) of cash flows that need to be forecasted for a new project?

Selected Answer:
d.
All of the above
Correct Answer:
d.
All of the above


Question 4
1 out of 1 points





If a company would need to increase net working capital to start a potential new project how
should it be treated in the project's cash flow analysis?
Selected
Answer:
b.
The increase in net working capital should be an outflow as part of the
project's initial cash flow
Correct
Answer:
b.
The increase in net working capital should be an outflow as part of the
project's initial cash flow


Question 5
1 out of 1 points




Which of the following should be excluded from the cash flow analysis for a potential project?

Selected Answer:
c.
Interest expense
Correct Answer:
c.
Interest expense


Question 6
1 out of 1 points




A company expects to need to increase their net working capital by $100,000 at the beginning of a
potential project's life. By how much would this event affect the project's terminal cash flow at the
end of its expected life if the company's tax rate is 40%

Selected Answer:
d.
+$100,000
Correct Answer:
d.
+$100,000


Tuesday, July 29, 2014 3:44:47 AM CDT
OK