1. The payback period for a project with an initial investment of $1000 and cash flows of 500, 300, 400, 100 is

Select one:

a. 2 years and six months

b. 2 years only

c. 2 years and 4 months

d. 2 years and 3 months

Project (A) has NPV of 19123.35, project (B) has NPV of 7723.51, project (C) has NPV of -333521 and Project D has NPV of 0. If these projects are Mutually exclusive, I should select

Select one:

a. Project A only

b. Project C, because it is the only project with a negative NPV

c. Project A and B only

d. Project A, B and D only

The fair value of a bond with a par value of 1000 BD and a Coupon payment of 100 BD and a maturity period of 20 years and the interest is paid twice a year, the market interest rate = 8% is

Select one:

a. 1197.65 BD

b. 1000 BD

c. 2194.3 BD

d. 1135.5 BD

JNTH has a constant dividend growth rate of 7%. Its current dividend is $1.2. Your required return is 6%. The fair value for Jnth is:

Select one:

a. 128.4

b. -128.4

c. 120

d. Information is not enough to reach an answer

Fatimas Father deposited 5000 BD when she was 1 year old in Ithmar Bank, which is paying 8% interest rate. Fatima now is 18 years old, and she wants to use the money to study medicine in the UK. How much money in her account now?

Select one:

a. 18500 BD

b. 85000 BD

c. 168750 BD

d. Not enough information

Project (A) has NPV of 19123.35, project (B) has NPV of 7723.51, project (C) has NPV of -333521 and Project D has NPV of 0. If these projects are Independent projects, I should select

Select one:

a. Project A only

b. Project A and B only

c. Project A and B and D only

d. Project C, because it is the only project with a negative NPV

The Bond Below is

Par Value $1,000

Coupon 4.5%

Maturity 3 years

Required Rate of Return 9.9%

Select one:

a. At Par

b. At Discount

c. At Premium

d. Not enough information to decide

In November 2019, ABC Traders sold goods for $100,000 payment for which will receive in April 2020. It incurs cash expenses of $80,000, all of which are paid in November 2019.the Net cash flow in 31/12/December is

Select one:

a. $20,000

b. $80,000

c. $100,000

d. - $80,000

According to the IRR decision criteria, projects that have a cost of capital of 5% and an IRR of 10% should be:

Select one:

a. Accepted

b. Rejected

c. We need to calculate NPV first

d. We need to know the cost of the project in dollars first

A company has an expected return of 20% and a risk of 10% while another company has the same Expected return but with a risk of 20%, which of the following are better:

Select one:

a. To invest in the first company

b. To invest in the second company

c. To invest in both of them

d. Not to invest in both of them

The ratio that is used to compare the market value between companies is

Select one:

a. Equity Multiplier

b. EPS

c. P/E

d. Profit margin

Answer only, I need within 10 minutes