1. In a spiderplot, the most sensitive factor is the one with: a. the highest Y-intercept value b. the highest X-intercept value c. the most positive slope value d. the highest absolute slope value 2. Equivalence of cash flows is NOT affected by: a. Timing of the cash flow b. Magnitude of the cash flow c. Interest rate. d. Point of view used 3. A Php 1,000,000 loan has a nominal interest rate of 10% per year compounded quarterly. If this amount is to be paid ott quarterly over 5 years, how much will be the monthly amount due? a. 1,000,000 (A/P, 10%, 5) b. 1,000,000 (A/P, 2.5%, 20) c. 1,000,000 (A/P, 3.33%, 20) d. 1,000,000 (A/P, 5%, 20)

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. In a spiderplot, the most sensitive factor is the one with:
a. the highest Y-intercept value
b. the highest X-intercept value
c. the most positive slope value.
d. the highest absolute slope value
2. Equivalence of cash flows is NOT affected by:
a. Timing of the cash flow
b. Magnitude of the cash flow
c. Interest rate.
d. Point of view used
3. A Php 1,000,000 loan has a nominal interest rate of 10% per year compounded.
quarterly. If this amount is to be paid oft quarterly over 5 years, how much will
be the monthly amount due?
a. 1,000,000 (A/P, 10%, 5)
b. 1,000,000 (A/P, 2.5%, 20)
c. 1,000,000 (A/P, 3.33%, 20)
d. 1,000,000 (A/P, 5%, 20)
4. A bank advertises mortgages at an interest rate of 2% per month. What is the
effective annual interest rate? Select the closest value.
a. 1%
b. 13%
c. 24%
d. 27%
5. Which of the following is the most useful if we want to measure the effect of
uncertainty in parameter estimates?
a. Sensitivity Analysis
b. Basic Economic Study Methods
c. Payback Period.
d. Decision Tree Analysis.
6. Given the profil maliix below, determine the preferred alternative
Minimax/Maximin Criterion.
using the
State 3
State 2
a. Alternative A
State 1
5
12
17
b. Alternative B
Alternative A
Alternative B
8
7
6
c. Alternative C
Alternative C
9
9
9
d. Alternative D.
Alternative D
12
7
9
7. In a decision tree, the rollback value of a decision node is equal to:
a. The lowest rollback value among immediate successor nodes
b. The expected value of immediate successor nodes
c. The highest rollback value among immediate successor nodes.
d. None of the above
8. Which of the following is FALSE regarding benefit-cost ratio analysis?
a. It is not applicable when comparing multiple alternatives
b. It is commonly used in the evaluation of public sector projects
c. The project should be accepted if B-C ratio 2 1
d. None of the above
9. With an annual interest rate of 8% per year, what is the minimum amount of
money required to be invested today to provide a perpetual income of Php 418,000
per year? Select the closest value
a. Php 4M
b. Php 5M
C. Php 6M
d. Php 7M
10. Which of the following can be computed for without need for defining an MARR?
a. Discounted payback period
b. Capitalized worth
c. Internal rate of return.
d. None of the above
Transcribed Image Text:1. In a spiderplot, the most sensitive factor is the one with: a. the highest Y-intercept value b. the highest X-intercept value c. the most positive slope value. d. the highest absolute slope value 2. Equivalence of cash flows is NOT affected by: a. Timing of the cash flow b. Magnitude of the cash flow c. Interest rate. d. Point of view used 3. A Php 1,000,000 loan has a nominal interest rate of 10% per year compounded. quarterly. If this amount is to be paid oft quarterly over 5 years, how much will be the monthly amount due? a. 1,000,000 (A/P, 10%, 5) b. 1,000,000 (A/P, 2.5%, 20) c. 1,000,000 (A/P, 3.33%, 20) d. 1,000,000 (A/P, 5%, 20) 4. A bank advertises mortgages at an interest rate of 2% per month. What is the effective annual interest rate? Select the closest value. a. 1% b. 13% c. 24% d. 27% 5. Which of the following is the most useful if we want to measure the effect of uncertainty in parameter estimates? a. Sensitivity Analysis b. Basic Economic Study Methods c. Payback Period. d. Decision Tree Analysis. 6. Given the profil maliix below, determine the preferred alternative Minimax/Maximin Criterion. using the State 3 State 2 a. Alternative A State 1 5 12 17 b. Alternative B Alternative A Alternative B 8 7 6 c. Alternative C Alternative C 9 9 9 d. Alternative D. Alternative D 12 7 9 7. In a decision tree, the rollback value of a decision node is equal to: a. The lowest rollback value among immediate successor nodes b. The expected value of immediate successor nodes c. The highest rollback value among immediate successor nodes. d. None of the above 8. Which of the following is FALSE regarding benefit-cost ratio analysis? a. It is not applicable when comparing multiple alternatives b. It is commonly used in the evaluation of public sector projects c. The project should be accepted if B-C ratio 2 1 d. None of the above 9. With an annual interest rate of 8% per year, what is the minimum amount of money required to be invested today to provide a perpetual income of Php 418,000 per year? Select the closest value a. Php 4M b. Php 5M C. Php 6M d. Php 7M 10. Which of the following can be computed for without need for defining an MARR? a. Discounted payback period b. Capitalized worth c. Internal rate of return. d. None of the above
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