1. In a spiderplot, the most sensitive factor is the one with:a. the highest Y-intercept valueb. the highest X-intercept valuec. the most positive slope value.d. the highest absolute slope value2. Equivalence of cash flows is NOT affected by:a. Timing of the cash flowb. Magnitude of the cash flowc. Interest rate.d. Point of view used3. A Php 1,000,000 loan has a nominal interest rate of 10% per year compounded.quarterly. If this amount is to be paid oft quarterly over 5 years, how much willbe the monthly amount due?a. 1,000,000 (A/P, 10%, 5)b. 1,000,000 (A/P, 2.5%, 20)c. 1,000,000 (A/P, 3.33%, 20)d. 1,000,000 (A/P, 5%, 20)4. A bank advertises mortgages at an interest rate of 2% per month. What is theeffective annual interest rate? Select the closest value.a. 1%b. 13%c. 24%d. 27%5. Which of the following is the most useful if we want to measure the effect ofuncertainty in parameter estimates?a. Sensitivity Analysisb. Basic Economic Study Methodsc. Payback Period.d. Decision Tree Analysis.6. Given the profil maliix below, determine the preferred alternativeMinimax/Maximin Criterion.using theState 3State 2a. Alternative AState 151217b. Alternative BAlternative AAlternative B876c. Alternative CAlternative C999d. Alternative D.Alternative D12797. In a decision tree, the rollback value of a decision node is equal to:a. The lowest rollback value among immediate successor nodesb. The expected value of immediate successor nodesc. The highest rollback value among immediate successor nodes.d. None of the above8. Which of the following is FALSE regarding benefit-cost ratio analysis?a. It is not applicable when comparing multiple alternativesb. It is commonly used in the evaluation of public sector projectsc. The project should be accepted if B-C ratio 2 1d. None of the above9. With an annual interest rate of 8% per year, what is the minimum amount ofmoney required to be invested today to provide a perpetual income of Php 418,000per year? Select the closest valuea. Php 4Mb. Php 5MC. Php 6Md. Php 7M10. Which of the following can be computed for without need for defining an MARR?a. Discounted payback periodb. Capitalized worthc. Internal rate of return.d. None of the above

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1. In a spiderplot, the most sensitive factor is the one with: a. the highest Y-intercept value b. the highest X-intercept value c. the most positive slope value d. the highest absolute slope value 2. Equivalence of cash flows is NOT affected by: a. Timing of the cash flow b. Magnitude of the cash flow c. Interest rate. d. Point of view used 3. A Php 1,000,000 loan has a nominal interest rate of 10% per year compounded quarterly. If this amount is to be paid ott quarterly over 5 years, how much will be the monthly amount due? a. 1,000,000 (A/P, 10%, 5) b. 1,000,000 (A/P, 2.5%, 20) c. 1,000,000 (A/P, 3.33%, 20) d. 1,000,000 (A/P, 5%, 20)

1. In a spiderplot, the most sensitive factor is the one with: a. the highest Y-intercept value b. the highest X-intercept value c. the most positive slope value d. the highest absolute slope value 2. Equivalence of cash flows is NOT affected by: a. Timing of the cash flow b. Magnitude of the cash flow c. Interest rate. d. Point of view used 3. A Php 1,000,000 loan has a nominal interest rate of 10% per year compounded quarterly. If this amount is to be paid ott quarterly over 5 years, how much will be the monthly amount due? a. 1,000,000 (A/P, 10%, 5) b. 1,000,000 (A/P, 2.5%, 20) c. 1,000,000 (A/P, 3.33%, 20) d. 1,000,000 (A/P, 5%, 20)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 16MC: When using the NPV method for a particular investment decision, if the present value of all cash...

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