Feedback - Module Four Graded Quiz - This Quiz Contributes 10% Towards Your Final Grade - Due 29th June
Feedback - Module Four Graded Quiz - This Quiz Contributes 10% Towards Your Final Grade - Due 29th June
Feedback - Module Four Graded Quiz - This Quiz Contributes 10% Towards Your Final Grade - Due 29th June
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You submitted this quiz on Tue 7 Jul 2015 8:47 AM PDT. You got a score of 10.00 out of 10.00. However, you will not get credit for
it, since it was submitted past the deadline.
This quiz contributes 10% towards your final grade for this course.
There are 10 questions - Attempt all questions.
You can attempt this quiz two (2) times only. The highest score will be used towards your final grade.
Ensure you have watched all the lecture videos, done the practice quiz and other learning activities for Module 4 BEFORE doing
this quiz.
Question 1
Which of the following does the discount rate r (eg: 4% p.a.) NOT account for?
Your Answer
Score
opportunity cost
expected inflation
Correct
1.00
Explanation
Total
1.00 / 1.00
Question 2
If I invest $600 today at an annual interest rate of 5% p.a. after 8 years my investment will be worth more than $850
Your Answer
Score
Explanation
1.00
Correct
False
True
Correct
Total
1.00 / 1.00
Question 3
The quality of an analysts earnings forecast does NOT depend on which of the following:
Your Answer
Score
Correct
1.00
Total
1.00 / 1.00
Question 4
At which of the following discount rates would the following investment break even:
Initial cost of $11,000, cash flows of $6,000 for two years
Your Answer
Score
Explanation
1.00
Correct
4%
5%
6%
7%
Correct
Total
1.00 / 1.00
Question 5
According to NPV analysis, should the following project be undertaken?
Initial gain of $10,500; negative cash flows of $6,000 for two years with a 8% p.a. discount rate
Your Answer
Score
Explanation
1.00
Correct
Yes
No
Correct
Total
Question 6
At which of the following discount rates would the following investment break even:
Initial cost of $3,000, cash flows of $1,682.5 for 2 years
1.00 / 1.00
Your Answer
Score
Explanation
1.00
Correct
6% p.a.
7% p.a.
8% p.a.
Correct
9% p.a.
Total
1.00 / 1.00
Question 7
Calculate the NPV of a project with an initial cost of $1,000,000; and positive cash flows of $300,000 for the next 5 years with a 10%
p.a. discount rate:
Your Answer
$500,000
$97,579
Score
Explanation
$327,343
$137,236
Correct
Total
1.00
Correct
1.00 / 1.00
Question 8
Calculate the NPV of a project that has no initial cost ($0) however will provide the following cash flows with a discount rate of 8%
p.a.
Yr1: $4,000
Yr2: -$3,000
Yr3: $80,000
Your Answer
Score
Explanation
1.00
Correct
$61,699
$56,743
$64,638
Correct
$81,000
Total
1.00 / 1.00
Question 9
If a firm is considering 2 independent investment proposals (Investment A: NPV $4,000 & Investment B: NPV $2,500) is it correct to
say the firm should invest in A instead of investing in B.
Your Answer
Score
Explanation
1.00
Correct
True
False
Total
Correct
1.00 / 1.00
Question 10
Calculate the NPV of a project that has an initial cost of $10,000 and three years of positive $3,000 cash flows with a discount rate of
0% p.a.
Your Answer
-$1,000
Correct
Score
Explan
1.00
Correct
-$436
$1,563
Total
1.00 / 1.00