2021年新版罗斯公司理财题库全集

Chapter05NetPresentValueandOtherInvestmentRules MultipleChoiceQuestions 1. Thedifferencebetweenthepresentvalueofaninvestmentanditscostisthe: A. netpresentvalue.B. internalrateofreturn.C. paybackperiod.D. profitabilityindex.E. discountedpaybackperiod. 2. Whichoneofthefollowingstatementsconcerningnetpresentvalue(NPV)iscorrect? A. Aninvestmentshouldbeacceptedif，andonlyif，theNPVisexactlyequaltozero.B. AninvestmentshouldbeacceptedonlyiftheNPVisequaltotheinitialcashflow.C. AninvestmentshouldbeacceptediftheNPVispositiveandrejectedifitisnegative.D. Aninvestmentwithgreatercashinflowsthancashoutflows，regardlessofwhenthecashflowsoccur，willalwayshaveapositiveNPVandthereforeshouldalwaysbeaccepted.E. Anyprojectthathaspositivecashflowsforeverytimeperiodaftertheinitialinvestmentshouldbeaccepted. 3. Thelengthoftimerequiredforaninvestmenttogeneratecashflowssufficienttorecovertheinitialcostoftheinvestmentiscalledthe: A. netpresentvalue.B. internalrateofreturn.C. paybackperiod.D. profitabilityindex.E. discountedcashperiod. 4. Whichoneofthefollowingstatementsiscorrectconcerningthepaybackperiod? A. Aninvestmentisacceptableifitscalculatedpaybackperiodislessthansomepre-specifiedperiodoftime.B. Aninvestmentshouldbeacceptedifthepaybackispositiveandrejectedifitisnegative.C. Aninvestmentshouldberejectedifthepaybackispositiveandacceptedifitisnegative.D. Aninvestmentisacceptableifitscalculatedpaybackperiodisgreaterthansomepre-specifiedperiodoftime.E. Aninvestmentshouldbeacceptedanytimethepaybackperiodislessthanthediscountedpaybackperiod，givenapositivediscountrate. 5. Thelengthoftimerequiredforaproject'sdiscountedcashflowstoequaltheinitialcostoftheprojectiscalledthe: A. netpresentvalue.B. internalrateofreturn.C. paybackperiod.D. discountedprofitabilityindex.E. discountedpaybackperiod. 6. Thediscountedpaybackrulestatesthatyoushouldacceptprojects: A. whichhaveadiscountedpaybackperiodthatisgreaterthansomepre-specifiedperiodoftime.B. ifthediscountedpaybackispositiveandrejectedifitisnegative.C. onlyifthediscountedpaybackperiodequalssomepre-specifiedperiodoftime.D. ifthediscountedpaybackperiodislessthansomepre-specifiedperiodoftime.E. onlyifthediscountedpaybackperiodisequaltozero. 7. Thediscountratethatmakesthenetpresentvalueofaninvestmentexactlyequaltozeroiscalledthe: A. externalrateofreturn.B. internalrateofreturn.C. averageaccountingreturn.D. profitabilityindex.E. equalizer. 8. AninvestmentisacceptableifitsIRR: A. isexactlyequaltoitsnetpresentvalue(NPV).B. isexactlyequaltozero.C. islessthantherequiredreturn.D. exceedstherequiredreturn.E. isexactlyequalto100%. 9. ThepossibilitythatmorethanonediscountratewillmaketheNPVofaninvestmentequaltozeroiscalledthe_____problem. A. netpresentvalueprofilingB. operationalambiguityC. mutuallyexclusiveinvestmentdecisionD. issuesofscaleE. multipleratesofreturn 10. Asituationinwhichacceptingoneinvestmentpreventstheacceptanceofanotherinvestmentiscalledthe: A. netpresentvalueprofile.B. operationalambiguitydecision.C. mutuallyexclusiveinvestmentdecision.D. issuesofscaleproblem.E. multiplechoicesofoperationsdecision. 11. Thepresentvalueofaninvestment'sfuturecashflowsdividedbytheinitialcostoftheinvestmentiscalledthe: A. netpresentvalue.B. internalrateofreturn.C. averageaccountingreturn.D. profitabilityindex.E. profileperiod. 12. Aninvestmentisacceptableiftheprofitabilityindex(PI)oftheinvestmentis: A. greaterthanone.B. lessthanone.C. greaterthantheinternalrateofreturn(IRR).D. lessthanthenetpresentvalue(NPV).E. greaterthanapre-specifiedrateofreturn. 13. Allelseconstant，thenetpresentvalueofatypicalinvestmentprojectincreaseswhen: A. thediscountrateincreases.B. eachcashinflowisdelayedbyoneyear.C. theinitialcostofaprojectincreases.D. therateofreturndecreases.E. allcashinflowsoccurduringthelastyearofaproject'slifeinsteadofperiodicallythroughoutthelifeoftheproject. 14. Theprimaryreasonthatcompanyprojectswithpositivenetpresentvaluesareconsideredacceptableisthat: A. theycreatevaluefortheownersofthefirm.B. theproject'srateofreturnexceedstherateofinflation.C. theyreturntheinitialcashoutlaywithinthreeyearsorless.D. therequiredcashinflowsexceedtheactualcashinflows.E. theinvestment'scostexceedsthepresentvalueofthecashinflows. 15. Ifaprojecthasanetpresentvalueequaltozero，then:I.thepresentvalueofthecashinflowsexceedstheinitialcostoftheproject.II.theprojectproducesarateofreturnthatjustequalstheraterequiredtoaccepttheproject.III.theprojectisexpectedtoproduceonlytheminimallyrequiredcashinflows.IV.anydelayinreceivingtheprojectedcashinflowswillcausetheprojecttohaveanegativenetpresentvalue. A. IIandIIIonlyB. IIandIVonlyC. I，II，andIVonlyD. II，III，andIVonlyE. I，II，andIIIonly 16. Netpresentvalue: A. cannotbeusedwhendecidingbetweentwomutuallyexclusiveprojects.B. ismoreusefultodecisionmakersthantheinternalrateofreturnwhencomparingdifferentsizedprojects.C. iseasytoexplaintonon-financialmanagersandthusistheprimarymethodofanalysisusedbythelowestlevelsofmanagement.D. isnotanaswidelyusedtoolaspaybackanddiscountedpayback.E. isverysimilarinitsmethodologytotheaverageaccountingreturn. 17. Paybackisfrequentlyusedtoanalyzeindependentprojectsbecause: A. itconsidersthetimevalueofmoney.B. allrelevantcashflowsareincludedintheanalysis.C. itiseasyandquicktocalculate.D. itisthemostdesirableofalltheavailableanalyticalmethodsfromafinancialperspective.E. itproducesbetterdecisionsthanthosemadeusingeitherNPVorIRR. 18. Theadvantagesofthepaybackmethodofprojectanalysisincludethe:I.applicationofadiscountratetoeachseparatecashflow.II.biastowardsliquidity.III.easeofuse.IV.arbitrarycutoffpoint. A. IandIIonlyB. IandIIIonlyC. IIandIIIonlyD. IIandIVonlyE. II，III，andIVonly 19. Allelseequal，thepaybackperiodforaprojectwilldecreasewheneverthe: A. initialcostincreases.B. requiredreturnforaprojectincreases.C. assigneddiscountratedecreases.D. cashinflowsaremovedearlierintime.E. durationofaprojectislengthened. 20. Thediscountedpaybackperiodofaprojectwilldecreasewheneverthe: A. discountrateappliedtotheprojectisincreased.B. initialcashoutlayoftheprojectisincreased.C. timeperiodoftheprojectisincreased.D. amountofeachprojectcashinflowisincreased.E. costsofthefixedassetsutilizedintheprojectincrease. 21. Thediscountedpaybackrulemaycause: A. somepositivenetpresentvalueprojectstoberejected.B. themostliquidprojectstoberejectedinfavoroflessliquidprojects.C. projectstobeincorrectlyacceptedduetoignoringthetimevalueofmoney.D. someprojectswithnegativenetpresentvaluestobeaccepted.E. BothAandD. 22. Theinternalrateofreturn(IRR):I.rulestatesthatatypicalinvestmentprojectwithanIRRthatislessthantherequiredrateshouldbeaccepted.II.istherategeneratedsolelybythecashflowsofaninvestment.III.istheratethatcausesthenetpresentvalueofaprojecttoexactlyequalzero.IV.caneffectivelybeusedtoanalyzeallinvestmentscenarios. A. IandIVonlyB. IIandIIIonlyC. I，II，andIIIonlyD. II，III，andIVonlyE. I，II，III，andIV 23. Theinternalrateofreturnforaprojectwillincreaseif: A. theinitialcostoftheprojectcanbereduced.B. thetotalamountofthecashinflowsisreduced.C. eachcashinflowismovedsuchthatitoccursoneyearlaterthanoriginallyprojected.D. therequiredrateofreturnisreduced.E. thesalvagevalueoftheprojectisomittedfromtheanalysis. 24. Theinternalrateofreturnis: A. morereliableasadecisionmakingtoolthannetpresentvaluewheneveryouareconsideringmutuallyexclusiveprojects.B. equivalenttothediscountratethatmakesthenetpresentvalueequaltoone.C. difficulttocomputewithouttheuseofeitherafinancialcalculatororacomputer.D. dependentupontheinterestratesofferedinthemarketplace.E. abettermethodologythannetpresentvaluewhendealingwithunconventionalcashflows. 25. Theinternalrateofreturntendstobe: A. easierformanagerstocomprehendthanthenetpresentvalue.B. extremelyaccurateevenwhencashflowestimatesarefaulty.C. ignoredbymostfinancialanalysts.D. usedprimarilytodifferentiatebetweenmutuallyexclusiveprojects.E. utilizedinprojectanalysisonlywhenmultiplenetpresentvaluesapply. 26. YouaretryingtodeterminewhethertoacceptprojectAorprojectB.Theseprojectsaremutuallyexclusive.Aspartofyouranalysis，youshouldcomputetheincrementalIRRbydetermining: A. theinternalrateofreturnforthecashflowsofeachproject.B. thenetpresentvalueofeachprojectusingtheinternalrateofreturnasthediscountrate.C. thediscountratethatequatesthediscountedpaybackperiodsforeachproject.D. thediscountratethatmakesthenetpresentvalueofeachprojectequalto1.E. theinternalrateofreturnforthedifferencesinthecashflowsofthetwoprojects. 27. GraphingtheNPVsofmutuallyexclusiveprojectsoverdifferentdiscountrateshelpsdemonstrate: A. howtheincrementalIRRvarieswithchangesinthediscountrate.B. howdecisionsconcerningmutuallyexclusiveprojectsarederived.C. howthedurationofaprojectaffectsthedecisionastowhichprojecttoaccept.D. howthepaybackperiodandtheinitialcashoutflowofaprojectarerelated.E. howtheprofitabilityindexandthenetpresentvaluearerelated. 28. Theprofitabilityindexiscloselyrelatedto: A. payback.B. discountedpayback.C. averageaccountingreturn.D. netpresentvalue.E. internalrateofreturn. 29. Analysisusingtheprofitabilityindex: A. frequentlyconflictswiththeacceptandrejectdecisionsgeneratedbytheapplicationofthenetpresentvaluerule.B. isusefulasadecisiontoolwheninvestmentfundsarelimited.C. cannotbeusedtoaidcapitalrationing.D. utilizesthesamebasicvariablesasthoseusedintheaverageaccountingreturn.E. producesresultswhichtypicallyaredifficulttocomprehendorapply. 30. Ifyouwanttoreviewaprojectfromabenefit-costperspective，youshouldusethe_______methodofanalysis. A. netpresentvalueB. paybackC. internalrateofreturnD. averageaccountingreturnE. profitabilityindex 31. Whenthepresentvalueofthecashinflowsexceedstheinitialcostofaproject，thentheprojectshouldbe: A. acceptedbecausetheinternalrateofreturnispositive.B. acceptedbecausetheprofitabilityindexisgreaterthan1.C. acceptedbecausetheprofitabilityindexisnegative.D. rejectedbecausetheinternalrateofreturnisnegative.E. rejectedbecausethenetpresentvalueisnegative. 32. Whichoneofthefollowingisthebestexampleoftwomutuallyexclusiveprojects? A. planningtobuildawarehouseandaretailoutletsidebyside.B. buyingsufficientequipmenttomanufacturebothdesksandchairssimultaneously.C. usinganemptywarehouseforstorageorrentingitentirelyouttoanotherfirm.D. usingthecompanysalesforcetopromotesalesofbothshoesandsocks.E. buyingbothinventoryandfixedassetsusingfundsfromthesamebondissue. 33. TheLibertyCo.isconsideringtwoprojects.ProjectAconsistsofbuildingawholesalebookoutletonlot#169oftheEnglewoodRetailCenter.ProjectBconsistsofbuildingasit-downrestaurantonlot#169oftheEnglewoodRetailCenter.Whentryingtodecidewhethertobuildthebookoutletortherestaurant，managementshouldrelymostheavilyontheanalysisresultsfromthe_____methodofanalysis. A. profitabilityindexB. internalrateofreturnC. paybackD. netpresentvalueE. accountingrateofreturn 34. Whentwoprojectsbothrequirethetotaluseofthesamelimitedeconomicresource，theprojectsaregenerallyconsideredtobe: A. independent.B. marginallyprofitable.C. mutuallyexclusive.D. acceptable.E. internallyprofitable. 35. Mattisanalyzingtwomutuallyexclusiveprojectsofsimilarsizeandhaspreparedthefollowingdata.Bothprojectshave5yearlives.  Matthasbeenaskedforhisbestrecommendationgiventhisinformation.Hisrecommendationshouldbetoaccept: A. projectBbecauseithastheshortestpaybackperiod.B. bothprojectsastheybothhavepositivenetpresentvalues.C. projectAandrejectprojectBbasedontheirnetpresentvalues.D. projectBandrejectprojectAbasedonothercriterianotmentionedintheproblem.E. projectBandrejectprojectAbasedonboththepaybackperiodandtheaverageaccountingreturn. 36. Giventhatthenetpresentvalue(NPV)isgenerallyconsideredtobethebestmethodofanalysis，whyshouldyoustillusetheothermethods? A. Theothermethodshelpvalidatewhetherornottheresultsfromthenetpresentvalueanalysisarereliable.B. Youneedtousetheothermethodssinceconventionalpracticedictatesthatyouonlyacceptprojectsafteryouhavegeneratedthreeacceptindicators.C. Youneedtouseothermethodsbecausethenetpresentvaluemethodisunreliablewhenaprojecthasunconventionalcashflows.D. Theinternalrateofreturnmustalwaysindicateacceptancesincethisisthebestmethodfromafinancialperspective.E. ThediscountedpaybackmethodmustalwaysbecomputedtodetermineifaprojectreturnsapositivecashflowsinceNPVdoesnotmeasurethisaspectofaproject. 37. Inactualpractice，managersmayusethe:I.IRRbecausetheresultsareeasytocommunicateandunderstand.II.paybackbecauseofitssimplicity.III.netpresentvaluebecauseitisconsideredbymanytobethebestmethodofanalysis. A. IandIIonlyB. IIandIIIonlyC. IandIIIonlyD. I，II，andIIIE. Noneoftheabove 38. Nomatterhowmanyformsofinvestmentanalysisyoudo: A. theactualresultsfromaprojectmayvarysignificantlyfromtheexpectedresults.B. theinternalrateofreturnwillalwaysproducethemostreliableresults.C. aprojectwillneverbeacceptedunlessthepaybackperiodismet.D. theinitialcostswillgenerallyvaryconsiderablyfromtheestimatedcosts.E. onlythefirstthreeyearsofaprojecteveraffectitsfinaloutcome. 39. Whichofthefollowingmethodsofprojectanalysisarebiasedtowardsshort-termprojects?I.internalrateofreturnII.netpresentvalueIII.paybackIV.discountedpayback A. IandIIonlyB. IIIandIVonlyC. IIandIIIonlyD. IandIVonlyE. IIandIVonly 40. Ifaprojectisassignedarequiredrateofreturnequaltozero，then: A. thetimingoftheproject'scashflowshasnobearingonthevalueoftheproject.B. theprojectwillalwaysbeaccepted.C. theprojectwillalwaysberejected.D. whethertheprojectisacceptedorrejectedwilldependonthetimingofthecashflows.E. theprojectcanneveraddvaluefortheshareholders. 41. Youareconsideringaprojectwiththefollowingdata:Internalrateofreturn8.7%Profitabilityratio.98Netpresentvalue-$393Paybackperiod2.44yearsRequiredreturn9.5%Whichoneofthefollowingiscorrectgiventhisinformation? A. Thediscountrateusedincomputingthenetpresentvaluemusthavebeenlessthan8.7%.B. Thediscountedpaybackperiodwillhavetobelessthan2.44years.C. Thediscountrateusedtocomputetheprofitabilityratiowasequaltotheinternalrateofreturn.D. Thisprojectshouldbeacceptedbasedontheprofitabilityratio.E. Thisprojectshouldberejectedbasedontheinternalrateofreturn. 42. AcceptingpositiveNPVprojectsbenefitsthestockholdersbecause: A. itisthemosteasilyunderstoodvaluationprocess.B. thepresentvalueoftheexpectedcashflowsareequaltothecost.C. thepresentvalueoftheexpectedcashflowsaregreaterthanthecost.D. itisthemosteasilycalculated.E. Noneoftheabove. 43. WhichofthefollowingdoesnotcharacterizeNPV? A. NPVdoesnotexplicitlyincorporateriskintotheanalysis.B. NPVincorporatesallrelevantcashflowinformation.C. NPVusesalloftheproject'scashflows.D. NPVdiscountsallfuturecashflows.E. UsingNPVwillleadtodecisionsthatmaximizeshareholderwealth. 44. Thepaybackperiodrule: A. discountscashflows.B. ignoresinitialcost.C. alwaysusesallpossiblecashflowsinitscalculation.D. BothAandC.E. Noneoftheabove. 45. Thepaybackperiodruleacceptsallinvestmentprojectsinwhichthepaybackperiodforthecashflowsis: A. greaterthanone.B. greaterthanthecutoffpoint.C. lessthanthecutoffpoint.D. positive.E. Noneoftheabove. 46. Thepaybackperiodruleisaconvenientandusefultoolbecause: A. itprovidesaquickestimateofhowrapidlytheinitialinvestmentwillberecouped.B. resultsofashortpaybackruledecisionwillbequicklyseen.C. itdoesnothavetotakeintoaccounttimevalueofmoney.D. Alloftheabove.E. Noneoftheabove. 47. Thediscountedpaybackperiodrule: A. considersthetimevalueofmoney.B. discountsthecutoffpoint.C. ignoresuncertaincashflows.D. ispreferredtotheNPVrule.E. Noneoftheabove. 48. Thepaybackperiodrule: A. determinesacutoffpointsothatallprojectsacceptedbytheNPVrulewillbeacceptedbythepaybackperiodrule.B. determinesacutoffpointsothatdepreciationisjustequaltopositivecashflowsinthepaybackyear.C. requiresanarbitrarychoiceofacutoffpoint.D. variesthecutoffpointwiththeinterestrate.E. BothAandD. 49. Modifiedinternalrateofreturn: A. handlesthemultipleIRRproblembycombiningcashflowsuntilonlyonechangeinsignchangeremains.B. requirestheuseofadiscountrate.C. doesnotrequiretheuseofadiscountrate.D. BothAandB.E. BothAandC. 50. Amutuallyexclusiveprojectisaprojectwhose: A. acceptanceorrejectionhasnoeffectonotherprojects.B. NPVisalwaysnegative.C. IRRisalwaysnegative.D. acceptanceorrejectionaffectsotherprojects.E. cashflowpatternexhibitsmorethanonesignchange. 51. Thetwofatalflawsoftheinternalrateofreturnruleare: A. arbitrarydeterminationofadiscountrateandfailuretoconsiderinitialexpenditures.B. arbitrarydeterminationofadiscountrateandfailuretocorrectlyanalyzemutuallyexclusiveinvestmentprojects.C. arbitrarydeterminationofadiscountrateandthemultiplerateofreturnproblem.D. failuretoconsiderinitialexpendituresandfailuretocorrectlyanalyzemutuallyexclusiveinvestmentprojects.E. failuretocorrectlyanalyzemutuallyexclusiveinvestmentprojectsandthemultiplerateofreturnproblem. 52. AprojectwillhavemorethanoneIRRif: A. theIRRispositive.B. theIRRisnegative.C. theNPViszero.D. thecashflowpatternexhibitsmorethanonesignchange.E. thecashflowpatternexhibitsexactlyonesignchange. 53. Usinginternalrateofreturn，aconventionalprojectshouldbeacceptediftheinternalrateofreturnis: A. equaltothediscountrate.B. greaterthanthediscountrate.C. lessthanthediscountrate.D. negative.E. positive. 54. Theinternalrateofreturnmaybedefinedas: A. thediscountratethatmakestheNPVequaltozero.B. thedifferencebetweenthemarketrateofinterestandtheNPV.C. themarketrateofinterestlesstherisk-freerate.D. theprojectacceptanceratesetbymanagement.E. Noneoftheabove. 55. TheproblemofmultipleIRRscanoccurwhen: A. thereisonlyonesignchangeinthecashflows.B. thefirstcashflowisalwayspositive.C. thecashflowsdeclineoverthelifeoftheproject.D. thereismorethanonesignchangeinthecashflows.E. Noneoftheabove. 56. TheelementsthatcauseproblemswiththeuseoftheIRRinprojectsthataremutuallyexclusiveare: A. thediscountrateandscaleproblems.B. timingandscaleproblems.C. thediscountrateandtimingproblems.D. scaleandreversingflowproblems.E. timingandreversingflowproblems. 57. IfthereisaconflictbetweenmutuallyexclusiveprojectsduetotheIRR，oneshould: A. dropthetwoprojectsimmediately.B. spendmoremoneyongatheringinformation.C. dependontheNPVasitwillalwaysprovidethemostvalue.D. dependonthepaybackbecauseitdoesnotsufferfromthesesameproblems.E. Noneoftheabove. 58. Theprofitabilityindexistheratioof: A. averagenetincometoaverageinvestment.B. internalrateofreturntocurrentmarketinterestrate.C. netpresentvalueofcashflowstointernalrateofreturn.D. netpresentvalueofcashflowstoreturnonequity.E. presentvalueofcashflowstoinitialinvestmentcost. 59. Whichofthefollowingstatementistrue? A. OnemustknowthediscountratetocomputetheNPVofaprojectbutonecancomputetheIRRwithoutreferringtothediscountrate.B. OnemustknowthediscountratetocomputetheIRRofaprojectbutonecancomputetheNPVwithoutreferringtothediscountrate.C. Paybackaccountsfortimevalueofmoney.D. TherewillalwaysbeoneIRRregardlessofcashflows.E. Returnonequityistheratiooftotalassetstototalnetincome. 60. GrahamandHarvey()foundthat___and___werethetwomostpopularcapitalbudgetingmethods. A. InternalRateofReturn；PaybackPeriodB. InternalRateofReturn；NetPresentValueC. NetPresentValue；PaybackPeriodD. ModifiedInternalRateofReturn；InternalRateofReturnE. ModifiedInternalRateofReturn；NetPresentValue 61. Whatisthenetpresentvalueofaprojectwiththefollowingcashflowsandarequiredreturnof12%?   A. -$287.22B. -$177.62C. $177.62D. $204.36E. $287.22 62. Whatisthenetpresentvalueofaprojectthathasaninitialcashoutflowof$12,670andthefollowingcashinflows?Therequiredreturnis11.5%.   A. $218.68B. $370.16C. $768.20D. $1,249.65E. $1,371.02 63. Aprojectwillproducecashinflowsof$1,750ayearforfouryears.Theprojectinitiallycosts$10,600togetstarted.Inyearfive，theprojectwillbeclosedandasaresultshouldproduceacashinflowof$8,500.Whatisthenetpresentvalueofthisprojectiftherequiredrateofreturnis13.75%? A. -$5,474.76B. -$1,011.40C. -$935.56D. $1,011.40E. $5,474.76 64. Youareconsideringthefollowingtwomutuallyexclusiveprojectsthatwillnotberepeated.Therequiredrateofreturnis11.25%forprojectAand10.75%forprojectB.Whichprojectshouldyouacceptandwhy?   A. projectA；becauseitsNPVisabout$335morethantheNPVofprojectB.B. projectA；becauseithasthehigherrequiredrateofreturn.C. projectB；becauseithasthelargesttotalcashinflow.D. projectB；becauseitreturnsallitscashflowswithintwoyears.E. projectB；because