Snowflake Resorts is considering investing in a project that has a net investment of $240,000. This project will return positive net cash flows annually for the next 5 years of $80,000 per year. Snowflake Resorts requires a 12% return on all of its investments. PART A: When projects have scale differences, only the Net Present Value method will rank the projects correctly (TRUE OR FALSE)   PART B: Fees paid to investment bankers and lawyers for issuing securities are called? Component costs Issuance costs Security costs Licensing costs PART C: Purposes for considering a capital project may include which of the following Cost reductions Growth projects Government required projects All of the above PART D: When the weighted average cost of capital for a project is considered on an after tax basis, this is considered the ____________ cost of capital Preferred Marginal Actual Estimated

Snowflake Resorts is considering investing in a project that has a net investment of $240,000. This project will return positive net cash flows annually for the next 5 years of $80,000 per year.

Snowflake Resorts requires a 12% return on all of its investments.

PART A: When projects have scale differences, only the Net Present Value method will rank the projects correctly (TRUE OR FALSE)

PART B: Fees paid to investment bankers and lawyers for issuing securities are called?

• 1. Component costs
  2. Issuance costs
  3. Security costs
  4. Licensing costs

PART C: Purposes for considering a capital project may include which of the following

• 1. 1. Cost reductions
     2. Growth projects
     3. Government required projects
     4. All of the above
• PART D: When the weighted average cost of capital for a project is considered on an after tax basis, this is considered the ____________ cost of capital

1. 1. 1. 1. Preferred
         2. Marginal
         3. Actual
         4. Estimated