WorksheetsQUIZZ 3 3A2
Total questions: 10
Worksheet time: 12mins
Net cash flow is equal to:
Net income + non-cash expenses
Net income - taxes + non-cash expenses
No answer
The Net Present Value (NPV) represents the difference between:
The initial cost of the investment and the present value of the cash flows generated by this investment
The initial price of the investment and the present value of the cash flows generated by this financing
The initial cost of financing and the acquired value of the cash flows generated by this investment
No response
Investments made by companies:
Correspond to tangible, intangible, and financial fixed assets
Are solely material
Are made in the short term
The fixed costs directly generated by the investment are:
Its energy consumption
Its depreciation
The bonus paid to the person who will use it
All answers are correct
The profitability index is the ratio between:
The ratio of cumulative cash flows to invested capital
The ratio of invested capital to NPV
Invested capital to total cash flows
No answer
What is an investment?
A permanent expense
A temporary expense for future benefits
An investment
No answer
Let's take two projects, A and B. The NPV of A is = 125, and that of B is = 150. The PI of A = 1.5, and that of B = 1.25.
We choose project A.
We choose project B.
We cannot choose.
An investment project with discounted cash flows of 18 000 TND in the first year, 23 000 TND in the second year, and 9000 TND in the third year for capital invested of 44000 TND.
Its payback period is 2 years and 3 months
Its payback period is 2 years and 4 months
Its payback period is 2 years and 5 months
An investment is considered acceptable when:
Its future gains exceed its cost at t=0
Its future gains exceed its price
The amount paid at t=0 to acquire it is less than its NPV spread over its lifetime
Consider a project with the following characteristics:
Initial cost I0 = -200
CFN (Year 1) = 120
CFN (Year 2) = 160
Given that the discount rate is 10%:
Its NPV = 41.3
and PI = 1.21
Its NPV = 66.1
and PI = 1.17
Its NPV = 86.9
and PI = 1.05
