Fina361Exam3
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Course
361
Subject
Finance
Date
Jun 4, 2024
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Pages
11
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Unit Test 3 Results for Trenton Sedlacek
Score for this quiz: 240 out of 280
Submitted Dec 8, 2023 at 1:16pm
This attempt took 68 minutes.
Question 1
12 / 12 pts
Correct!
8.03
Correct Answer
8.03 margin of error +/- 0.1
Question 2
12 / 12 pts
Correct!
2.27
Correct Answer
2.27 margin of error +/- 0.1
Question 3
10 / 10 pts
You are evaluating a project with the following cash flows: initial investment is $-22, and the expected
cash flows for years 1 - 3 are $17, $10 and $11 (all cash flows are in millions of dollars). What is this
projects NPV? The company's WACC is 14%.
Express your answer in millions of dollars, rounded to 2 decimals and without the dollar sign. So, if your
answer is 23.5678, just enter 23.57.
You are evaluating a project with an initial investment of $15.9 million dollars, and expected cash flows
of $7 million dollars each for years 1-3. What is the project's simple payback? The corporate WACC is
7%.
Express your answer in years, rounded to 2 decimals. So, if your answer is 2.7654, then just enter 2.77.
Which of the following statements is CORRECT? Assume that all projects being considered have normal
cash flows and are equally risky.
5/2/24, 6:28 PM
Trenton Sedlacek's Quiz History: Unit Test 3
https://canvas.unl.edu/courses/159814/quizzes/336340/history?version=1
1/11
If a project's IRR is equal to its WACC, then, under all reasonable conditions, the project's NPV must be negative.
If a project's IRR is equal to its WACC, then under all reasonable conditions, the project's IRR must be negative.
Correct!
If a project's IRR is equal to its WACC, then under all reasonable conditions the project's NPV must be zero.
There is no necessary relationship between a project's IRR, its WACC, and its NPV.
When evaluating mutually exclusive projects, those projects with relatively long lives will tend to have relatively high
NPVs when the cost of capital is relatively high.
The definition of IRR is the discount rate at which NPV is zero. Thus, this statement is true, all others are
not.
Question 4
10 / 10 pts
The new NPV will be lower than $100
Correct!
The new NPV will be higher than $100
Since taxes affect many things, it is not possible to tell.
The NPV will not change. Taxes do not affect the value of a project.
There is too little information to make a forecast.
Question 5
14 / 14 pts
Correct!
12.25
Suppose that you calculate the NPV of a project, and obtain a value of $100 million dollars. After
completing your analysis, you find out that the corporate tax rate will change from 40% to 30%. If nothing
else changes, what is the effect of this tax change on the NPV you had calculated? Assume that your
company has no debt.
You're evaluating a project with the following cash flows: initial investment is $119 million dollars, and
cash flows for years 1-3 are $14, $60 and $89 million dollars, respectively. The firm's WACC is 6%. What
is this project's MIRR?
Enter your answer as a percentage, rounded to 2 decimals, without the percentage sign. So, if your
answer is 0.115678, just enter 11.57.
5/2/24, 6:28 PM
Trenton Sedlacek's Quiz History: Unit Test 3
https://canvas.unl.edu/courses/159814/quizzes/336340/history?version=1
2/11
Correct Answer
12.25 margin of error +/- 0.1
Question 6
10 / 10 pts
Correct!
The firm should reject the project, as the IRR is lower than the WACC.
The firm should accept the project, as the IRR is higher than the WACC.
The firm should accept the project, as the NPV is positive.
The firm should accept the project, as the NPV is negative.
None of these statements are true.
Question 7
10 / 10 pts
The firm should accept the project, as the IRR is lower than the WACC.
The firm should reject the project, as the IRR is higher than the WACC.
Correct!
The firm should accept the project, as the NPV is positive.
The firm should reject the project, as the NPV is negative.
None of these statements are true.
Question 8
10 / 10 pts
Assume a new project requires an initial investment of $10 million dollars, with ensuing cash flows of $2,
$4 and $5 million in years 1, 2 and 3. Assuming the company's WACC is 10%, which of the following
statements is true?
Assume a new project requires an initial investment of $6 million dollars, with ensuing cash flows of $1,
$3 and $5 million in years 1, 2 and 3. Assuming the company's WACC is 10%, which of the following
statements is true?
From a WACC calculation prepared for you by a consultant, you find that their estimation of the after tax
cost of debt is 6%. Given a tax rate of 40% and a WACC of 15%, what must have been the cost of debt
before adjusting for taxes?
5/2/24, 6:28 PM
Trenton Sedlacek's Quiz History: Unit Test 3
https://canvas.unl.edu/courses/159814/quizzes/336340/history?version=1
3/11
Correct!
10%
6%
2.4%
15%
3.6%
Question 9
10 / 10 pts
About 50% of equity and 35% of debt
About 35% of equity and 50% of debt
Correct!
About 59% of equity and 41% of debt
About 41% of equity and 59% of debt
None of these describe the capital structure of the company.
Question 10
14 / 14 pts
9.29%
9.68%
10.08%
Correct!
10.50%
10.92%
D
$0.90
P
$27.50
Suppose you decide to start your own company. You have $50,000 of your own money to use as equity,
and on top of that you borrow $35,000 from a bank. Which of the following best describes the
composition of the capital structure of your firm?
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained
the following data: D
= $0.90; P
= $27.50; and g = 7.00% (constant). Based on the DCF approach,
what is the cost of equity from retained earnings?
0
0
0
0
5/2/24, 6:28 PM
Trenton Sedlacek's Quiz History: Unit Test 3
https://canvas.unl.edu/courses/159814/quizzes/336340/history?version=1
4/11
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Related Questions
Type equation here.Homework 5: Chapter 17
2020
Oct 13,
D. 7.28%
4. The standard deviation for the S&P S00 is
A. 9.38%
BUS 202
Dr. Fausti
Please fill out the table below. Use your estimates from the table to answer the multiple-choice
questions below. When answering the questions below remember that rounding may result in your
answer being slightly different that the answers provided, so pick the answer closet to your calculation.
B. 7.28%
C. 0.88%
D. 5.51%
Date
S&P
IBM
RR-S&P RR-IBM
5. If we use the standard deviation as a measure of financial risk which financial asset would be
ranked as having the greatest financial risk?
1/1/2020
2/1/2020
3/1/2020
4/1/2020
5/1/2020
6/1/2020
7/1/2020
3226
120
NA
NA
2954
125
A. S&P 500
B. IBM
2585
108
2912
122
6. If we use the coefficient of variation as a measure of financial risk which financial asset would be
ranked as having the greatest financial risk?
C S&P 500
D. IBM
3044
122
3100
119
3271
121
Expected RR
variance RR
std. dev RR
Cof. VAR
Yr. RR…
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QUESTION 7
Use the information in the table below for the following 5 q
A capital investment project is estimated to have the follow
1
21
4
-$60,000 $20,000
$22,500 $17,500
$25,000
The
company
utilizes a discount rate of 15% to evaluate ca
thoose the closest answer. Assume cash flows are receive
The NET PRESENT VALUE for the project shown above is:
D-$4,789.25
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launching new software with in 5 months at a cost of $ 5000 can be categorized under
a.
Scope
b.
Objective
c.
Project goal
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Instruction: Please answer the following questions. Submit your answers (word file or PDF). Minimum of words are 300 words.
Questions. Describe the positives and negatives for this development project.
FIGURE 2.1 Project Evaluation and Selection Form
EVALUATION CRITERIA
Investment (5)
Return on Investment
Time to Market
Increase in Market Share
PROJECT EVALUATION AND SELECTION
PROJECT A
$700,000
9.1%
10 months.
2%
Risk
Chance of Success
Comments
Project A: Major competitor already has similar product and may reduce price.
Project B New technology may not work as expected.
Project C Product features may not be accepted in some international markets
Low
High
PROJECT B
$2,100,000
18.3%
16 months
5%
High
Medium
PROJECT C
$1,200,000
11.5%
12 months
3%
Medium
High
Susay at day a
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21
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Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
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quiz is acceptung
Question 1 (10 points)
The Internal Rate of Return is a financial measure that allows us to estimate:
a
The nominal value of the returns on a project.
b
The profitability of a potential investment in a project.
The variance of returns on a project.
The median of the returns on a project.
Next Page
Once you click Next Page you will not be able to change you answer
Support | Schoology Blog I PRIVACY POI
JUN
30
MacBook Air
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Unit VI Assignment Instructions: This assignment involves answering a series of questions, and each question provides you with an opportunity to accomplish the following course learning outcome: 8. Critique interview techniques. Be sure to answer each question, save all of your work in this template, and submit it in Blackboard for grading. 1. After answering the last question, Jason said thank you and the interview was over. Briefly describe one or more techniques that Jason could have used to improve the conclusion of his interview. Your response should be at least 75 words. 2. Danielle was interviewing for a position, and the interviewer asked for her salary requirements. As Danielle was not expecting to hear that question, she mumbled for a minute before eventually saying $40,000.00, which is low for someone with her experience. Briefly describe one or more techniques…
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QUESTION 38
Last month, Jeff applied to three colleges (X, Y, and Z). Before applying he and his family had visited the all three colleges. Jeff has received admissions from Colleges X and Y. He is trying to decide which college he will attend. The following information is available:
College X College Y
(1) Cost of attendance $30,000 $21,000
(2) Program quality Excellent Average
(3) Campus visit cost $900 $300
(4) Location big city big city
(5) Scholarship $10,000 $10,000
Select the items that are relevant to Jeff's decision.
A.
(2), (4) only
B.
(1), (2), (3) only
C.
(1), (2) only
D.
(1), (3), (5) only
E.
(1), (3) only
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2. NET firm is trying to decide between five mutually exclusive one-
year projects.
Project 1
Project 2
Project 3
Project 4
Project 5
Return Probability of return occurring
16
20
-16
36
48
-8
16
24
-40
0
100
1.0
1.0
0.25
0.50
0.25
0.25
0.50
0.25
0.10
0.60
0.30
Remember to regularly save your work
Sheet 8 of 10
Module Code: ACF15084
Please work out the likely outcome for each project and discuss
whether you can make informed decision according to this.
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Apps ( MyWay
: 01 - Introduction
A this second one
What percentage of the entire development effort should be devoted tO
the PIP process? *
O Less than 10%
O Less than 5%
O Between 20 and 30%
O Between 10 and 20%
Defining the necessary activities required to organize the initiation team m
while they are working to define the scope of the project is the focus of
which of the following activities?
O Establishing the project initiation plan
O Establishing management procedures
O Establishing the project management environment and project workbook
O Establishing the relationship with the customer
A controlled process of initiating, planning, executing, and closing down a
project best defines:
O Project development
O Systems management
O Systems development
O Project management
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24
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None
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Typed and correct answer pleasae. i ll rate accordingly.
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Can I please have assistance with the answers that are incorrect in red? Thank you
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A https://mybusinesscourse.com/platform/mod/quiz/attempt.php?attempt33019128&cmid%3D204453&page%3D1
E BusinessCouse
A Return to course
* My Sub
M6: MBC Exercises Ch. 6 Navigation
Finish attempt
Question 2 Not complete
Mark 0.00 out of 1.00
P Flag question
Margin of Safety
Yellow Sticker Company's variable expenses are 40% of sales. The company has monthly fixed expenses of $15,000 and sells each unit for $0.50. The monthly target operating income is $7,500.
a. What is the monthly margin of safety in dollars if Yellow Sticker Company achieves its operating income goal?
SO
x in dollars
b. What is the monthly margin of safety in units if Yellow Sticker Company achieves its operating income goal?
x units
Check
You have correctly selected 0.
Incorrect
Marks for this submission: 0.00/1.00.
O Previous
B Save Answers
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with an answer key and I'm getting Answer A
for question 4 but the answer key for this one
says the answer is C. Can someone work
through this one and show me how its done
please?
For questions 3-4, consider the following table.
Investment Investment cost at i = 0 Revenue at t = 1 Revenue at t=
3.
180
200
-200
50
-300
149
Table 1
Suppose that you need to choose between two investment options A and B. Given that the persistent
anmual interest rate is 5 percent, which investment option would yiel a higher value?
(a) Option A.
(b) Option B.
(c) Both options would yield the same value.
(d)
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