Business Smarts!  Max Your Grade! 
Home  About Us  Subjects  Sample Modules  Terms  Fees  Register  Login 
Sample Questions 
Corporate Financial Management 
Net Present Value 
1) A project with a 3 year life and a cost of $28,000 generates revenues of $8,000 in year 1, $12,000 in year 2, and $17,000 in
year 3. If the discount rate is 3%, what is the NPV of the project? a) $34,635. b) $6,653. c) $6,356. d) $6,635. e) None of the above. 2) A project with a 3 year life and a cost of $28,000 generates revenues of $8,000 in year 1, $12,000 in year 2, and $17,000 in
year 3. If the discount rate is 4%, what is the NPV of the project? a) $5,090. b) $5,900. c) $5,700. d) $33,900. e) None of the above. 3) A project with a 3 year life and a cost of $32,000 generates revenues of $8,000 in year 1, $12,000 in year 2, and $17,000 in
year 3. If the discount rate is 5%, what is the NPV of the project? a) $1,288. b) $1,118. c) $1,188. d) $1,818. e) None of the above. 4) A project with a 3 year life and a cost of $65,000 generates revenues of $26,000 in year 1, $38,000 in year 2, and $19,000 in
year 3. If the discount rate is 5%, what is the NPV of the project? a) $10,462. b) $75,642. c) $8,642. d) $11,642. e) None of the above. 5) A project with a 3 year life and a cost of $70,000 generates revenues of $26,000 in year 1, $38,000 in year 2, and $19,000 in
year 3. If the discount rate is 7%, what is the NPV of the project? a) $5,000. b) $4,000. c) $3,000. d) $10,642. e) None of the above. 6) A project with a 3 year life and a cost of $70,000 generates revenues of $26,000 in year 1, $38,000 in year 2, and $19,000 in
year 3. If the discount rate is 10%, what is the NPV of the project? a) $784. b) $316.
c) $316. d) $784.
e) None of the above. 7) A project with a 3 year life and a cost of $85,000 generates revenues of $32,000 in year 1, $44,000 in year 2, and $52,000 in
year 3. If the discount rate is 8%, what is the NPV of the project? a) $32,632. b) $23,632. c) $3,632. d) $23,362. e) None of the above. 8) A project with a 3 year life and a cost of $85,000 generates revenues of $32,000 in year 1, $44,000 in year 2, and $52,000 in
year 3. If the discount rate is 11%, what is the NPV of the project? a) $17,265. b) $17,652. c) $17,562. d) $17,762. e) None of the above. 9) A project with a 3 year life and a cost of $95,000 generates revenues of $32,000 in year 1, $44,000 in year 2, and $52,000 in
year 3. If the discount rate is 14%, what is the NPV of the project? a) $2,206. b) $2,026. c) $2,062. d) $2,026.
e) None of the above. 10) A project with a 3 year life and a cost of $95,000 generates revenues of $32,000 in year 1, $44,000 in year 2, and $52,000 in
year 3. If the discount rate is 17%, what is the NPV of the project? a) $3,040.
b) $3,004.
c) $3,040. d) $3,400.
e) None of the above. 11) A project with a 10 year life and a cost of $180,000 generates revenues of $24,000 each year. If the discount rate is 3%,
what is the NPV of the project? a) $24,125. b) $24,275. c) $22,725. d) $24,725. e) None of the above. 12) A project with a 10 year life and a cost of $180,000 generates revenues of $24,000 each year. If the discount rate is 6%,
what is the NPV of the project? a) $3,845.
b) $3,548. c) $3,548.
d) $3,485.
e) None of the above. 13) A project with a 10 year life and a cost of $180,000 generates revenues of $24,000 each year. If the discount rate is 9%,
what is the NPV of the project? a) $27,976.
b) $25,697.
c) $25,796.
d) $25,976.
e) None of the above. 14) A project with a 12 year life and a cost of $250,000 generates revenues of $32,000 each year. If the discount rate is 4%,
what is the NPV of the project? a) $50,522. b) $50,233. c) $50,322. d) $60,322. e) None of the above. 15) A project with a 12 year life and a cost of $250,000 generates revenues of $32,000 each year. If the discount rate is 6%,
what is the NPV of the project? a) $18,283. b) $18,238. c) $18,382. d) $18,683. e) None of the above. 16) A project with a 12 year life and a cost of $250,000 generates revenues of $32,000 each year. If the discount rate is 8%,
what is the NPV of the project? a) $8,845. b) $8,845.
c) $8,458.
d) $18,845.
e) None of the above. 17) A project with a 15 year life and a cost of $200,000 generates revenues of $22,000 each year. If the discount rate is 5%,
what is the NPV of the project? a) $28,352. b) $22,352. c) $28,523. d) $28,352.
e) None of the above. 18) A project with a 15 year life and a cost of $200,000 generates revenues of $22,000 each year. If the discount rate is 6%,
what is the NPV of the project? a) $16,669. b) $13,669. c) $13,669.
d) $13,996. e) None of the above. 19) A project with a 15 year life and a cost of $200,000 generates revenues of $22,000 each year. If the discount rate is 7%,
what is the NPV of the project? a) $347.
b) $374. c) $374.
d) $394. e) None of the above. 20) A project with a 15 year life and a cost of $200,000 generates revenues of $22,000 each year. If the discount rate is 8%,
what is the NPV of the project? a) 11,691. b) $11,619.
c) $11,961.
d) $11,691.
e) None of the above. 



 
Quality Online Tutoring for Quantitative Business Courses  
Contact Us  Ethical Issues  Legal Issues  General FAQ  
 
© 2009  2010 Business Smarts  
