1)Which of the following formulas represents the future value of $500 invested a
ID: 2669374 • Letter: 1
Question
1)Which of the following formulas represents the future value of $500 invested at 8% compounded quarterly for five years?a. 500(1+.08)5
b. 500(1+.08)20
c. 500(1+.02)5
d. 500(1+.02)20
2)Beta is a statistical measure of:
a. hyperbolic.
b. total risk.
c. the standard deviation.
d. the relationship between an investment’s returns and the market return.
3)Two approaches for dealing with project risk to capture the variability of cash inflows and NPVs are
a) sensitivity analysis and simulation
b) scenario analysis and simulation
c) sensitivity analysis and scenario analysis
d) none of the above
4)The company's WACC is 10%. What are the project's payback, internal rate of return, and net present value?
a. Payback = 2.4; IRR = 10.00%; NPV = $600.
b. Payback = 2.4; IRR = 21.22%; NPV = $260.
c. Payback = 2.6; IRR = 21.22%; NPV = $300.
d. Payback = 2.6; IRR = 21.22%; NPV = $260.
e. Payback = 2.6; IRR = 24.12%; NPV = $300.
Explanation / Answer
1)A = P · (1 + R)N = $500 · (1 + .02)30 2)b 3)c 4)d
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.