TIM 305 Final exam samples questions with correct answers.

TIM 305 Final exam samples questions
with correct answers
A |capital |budgeting |project |has |a |net |investment |of |$450,000 |and |is |expected |to |generate |net |
cash |flows |of |$150,000 |annually |for |5 |years. |What |is |the |net |present |value |at |a |12% |required |
rate |of |return? |- |CORRECT |ANSWER✔✔-$48,212



A |capital |budgeting |project |is |expected |to |have |the |following |cash |flows:

Year |Cash |Flows

0 |-$500,000

1 |$300,000

2 |$250,000

3 |$200,000

4 |$100,000

What |is |the |project's |net |present |value |at |a |12% |required |rate |of |return? |- |CORRECT |
ANSWER✔✔-$173,063



A |capital |budgeting |project |is |expected |to |have |the |following |cash |flows:

Year |Cash |Flows

0 |-$550,000

1 |$200,000

2 |$300,000

3 |$400,000



What |is |the |NET |PRESENT |VALUE |using |9.5% |Return |- |CORRECT |ANSWER✔✔-$187,513.23