117 CFA Final Exam Prep Questions and Answers

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117 CFA Final Exam Prep Questions and Answers Given cash flow, calculate NPV and IRR. Required rate is 8 percent ->>C $3,379 10.9% Given cash flow, calculate payback and discounted period. Requir... ed rate is 8 percent ->>C 1.01 years longer than payback period Investment of $100. Required rate is 20 percent. NPV closest to ->>B $58.33 Investment of $150,000. Cost of capital is 10%. What is IRR ->>C 28.79 percent Kim corporation. required return 10%. what is NPV and IRR ->>A 102 million and 14.0% Kim corporation. payback and discounted period are closest to ->>B 4.3 years and 5.9 years Investment of $20,000. Rate is 8 percent. What is Profitability index. ->>C 1.25 Hermann Corporation. Required rate 10 percent. What is PI ->>C 1.56 Erin Chou. If all double, IRR would: ->>B stay the same and the NPV would increase Shirley Shea, neg NPV, pos IRR. Possible? ->>A Yes An investment w/ enhancement increases outlay. vertical intercept of NPV shifts: ->>A up and the horizontal interest shifts left Table attached - Two projects mutually exclusive. What is appropriate decision? ->>C Investment in Project 2 because it has higher NPV Table Attached - What discount rate would be same NPV for both? ->>B rate between 10.00 percent and 15.02 percent Wilson Flannery question. How many discount rates produce 0 NPV ->>C. Two, discount rates of 0 and 62% With regard to NPV of two projects, crossover rate is best described ->>A two projects have same NPV With regard to NPV, point profile crosses vertical axis is ->>B the sum off the undercounted cash flows from a project With regard to NPV, point profile crosses horizontal axis is ->>C a project's internal rate of return when the project's NPV is equal to zero With regard to capital budgeting, estimate least likely to include ->>interest costs Equity equals ->>A Assets - Liabilities Shareholders' equity most likely differs from market value because ->>B some factors that affect the generation of future cash flows are excluded All of the following are current assets except ->>B goodwill The most likely costs included in inventory, plant, equipment are ->>C delivery costs debt due within one year is ->>A Current [Show More]

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