WorksheetsCapital Budgeting
Total questions: 10
Worksheet time: 7mins
Bunga places $800 in a savings account paying 6% interest compounded annually. She wants to know how much money will be in the account at the end of 5 years. FV?
$1017
$1071
$598
$1081
Pevita places $1000 in a savings account paying 5% interest compounded annually. She wants to know how much money will be in the account at the end of 8 years?
$677
$1744
$766
$1477
Pamela wishes to find the present value of $1,700 that will be received 8 years from now (Pam’s opportunity cost is 8%). PV?
$677
$918
$1018
$1817
Agung wants to know the present value of money if the company's profit in the next 10 years is predicted $2000 (Annual discount rate = 10?
$5187
$5087
$791
$771
Alex is saving 5-year $1,000 annuities; annuity is an ordinary annuity. Fran Abrams wishes to determine how much money she will have at the end of 5 years, and it earns 7% annually?
$6153
$5751
$5000
$5571
Suppose a firm has an opportunity to spend $15,000 today on some investment that will produce $17,000 spread out over the next five years cash flow as follows: Year 1 = $3000, Year 2= $5000, Year 3= $4000, Year 4=$3000, and year 5=$2000. Please calculate NPV’s number (using discount rate: 5%).
$117
$-117
$2000
$-2000
Use problem number 6, please calculate IRR’s number?
5.2%
12.5%
4.7%
7.4%
Use problem number 6, please calculate Pay Back Period?
2 years
3 years
4 years
5 years
Use number 6, Is this a wise investment?
Yes
No
N/A
No idea
The following methods are used for risk analysis except.
Sensitivity Analysis
Scenario Analysis
Monte Carlo
Risk Premium Analysis
