31. A firm is evaluating two mutually exclusive projects that have unequal lives. The firm must evaluate the projects using the annualized net present value (ANPV) approach and recommend which project they should select. The firm's cost of capital has been determined to be 14 percent, and the projects have the following initial investments and cash flows: Project R Project S Initial Investment $40,000 $58,000 Cash Flows: 1 $20,000 $30,000 2 $20,000 $55,000 3 $20,000 4 $20,000 Using ANPV, what should the firm do? a. Chose Project R because its ANPV is $6460 b. Chose Project S because its ANPV is $6460 c. Chose Project S because its ANPV is $10637 d. Chose Project R because its ANPV is $18,274

32. The present value of a $25,000 perpetuity at a 14 percent discount rate is a. $219,298. b. $350,000. c. $285,000. d. $178,571.

33. NICO Corporation had net fixed assets of $2,000,000 at the end of 2019 and $1,800,000 at the end of 2018. In addition, the firm had a depreciation expense of $200,000 during 2019 and $180,000 during 2018. Using this information, NICO's net fixed asset investment for 2019 was: Select one: a. $3 b. $20000 c. $400000 d. $0

34. In comparing an ordinary annuity and an annuity due, which of the following is true? a. The future value of an ordinary annuity is always greater than the future value of an otherwise identical annuity due. b. All things being equal, one would prefer to receive an ordinary annuity compared to an annuity due. c. The future value of an annuity due is always less than the future value of an otherwise identical ordinary annuity, since one less payment is received with an annuity due. d. The future value of an annuity due is always greater than the future value of an otherwise identical ordinary annuity.

35. A firm has an issue of $1,000 par value bonds with a 9 percent stated coupon interest rate. The issue pays interest annually and has 20 years remaining to its maturity date. If bonds of similar risk are currently earning 11 percent, the firm's bond will sell for ________ today. a. $1,000 b. $1,123.33 c. $716.67 d. $840.67

36. Julian was given a gold coin originally purchased for $1 by his great-grandfather 50 years ago. Today the coin is worth $450. The rate of return realized on the sale of this coin is approximately equal to a. 13% b. cannot be determined with given information. c. 50% d. 7.5%

37. As the risk of a stock investment increases, investors' a. return will decrease. b. return will increase. c. required rate of return will increase. d. required rate of return will decrease.

38. To pay for her college education, Gina is saving $2,000 at the beginning of each year for the next eight years in a bank account paying 12 percent interest. How much will Gina have in that account at the end of 8th year? Select one: a. $27,552 b. $17,920 c. $24,600 d. $16,000

39. NICO Corporation had net current assets of $2,000,000 at the end of 2019 and $1,800,000 at the end of 2018. In addition, NICO had net spontaneous current liabilities of $1,000,000 in 2019 and $1,500,000 in 2018. Using this information, NICO's net current asset investment for 2019 was: a. $300,000. b. -$300,000. c. $700,000. d. -$700,000.

40. Another term sometimes applied to a common shareholder is a a. reciprocal owner of the firm. b. fundamental or basic owner of the firm. c. residual owner of the firm. d. net owner of the firm