Business Smarts - Sample Module for Corporate Financial Management

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.



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