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Question 1 of 6
1. Question
XYZ Company is considering investing in a project that requires an initial investment of $100,000 for some machinery. There will be net inflows of $20,000 for the first two years, $10,000 in years three and four, and $30,000 in year five. Finally, the machine has a salvage value of $25,000.
What is ARR value?
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Question 2 of 6
2. Question
A firm has to choose between three possible projects.
Capital cost $000 Project A 300 Project B 500 Project C 450 Net cash inflow ($000) Project A Project B Project C Year 1 75 100 50 Year 2 125 200 75 Year 3 125 300 250 Year 4 100 300 300 Year 5 75 150 200 What is the payback period of project A?
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Question 3 of 6
3. Question
A firm has to choose between three possible projects.
Capital cost $000 Project A 300 Project B 500 Project C 450 Net cash inflow ($000) Project A Project B Project C Year 1 75 100 50 Year 2 125 200 75 Year 3 125 300 250 Year 4 100 300 300 Year 5 75 150 200 What is the average rate of return (ARR) of project B?
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Question 4 of 6
4. Question
A firm has to choose between three possible projects
Capital cost $000 Project A 300 Project B 500 Project C 450 Net cash inflow ($000) Project A Project B Project C Year 1 75 100 50 Year 2 125 200 75 Year 3 125 300 250 Year 4 100 300 300 Year 5 75 150 200 What is the NPV Value for Project A?
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Question 5 of 6
5. Question
A firm has to choose between three possible projects
Capital cost $000 Project A 300 Project B 500 Project C 450 Net cash inflow ($000) Project A Project B Project C Year 1 75 100 50 Year 2 125 200 75 Year 3 125 300 250 Year 4 100 300 300 Year 5 75 150 200 What is the NPV Value for Project B?
CorrectIncorrect 
Question 6 of 6
6. Question
A firm has to choose between three possible projects
Capital cost $000 Project A 300 Project B 500 Project C 450 Net cash inflow ($000) Project A Project B Project C Year 1 75 100 50 Year 2 125 200 75 Year 3 125 300 250 Year 4 100 300 300 Year 5 75 150 200 What is the NPV Value for Project C?
CorrectIncorrect