provide a brief explanation for each answer. Thanks.QUESTION 1

1. A strategic budget entails planning expenditures on assets with cash flows that are expected to extend beyond one year
3. True
4. False

0.2 points

QUESTION 2

1. Which of the following is not a reason for capital budgeting projects?
3. a.Mergers
5. b.Sabotage of competitor's operations
7. c.Expansion of existing products or markets
9. d.All of the above
11. e.None of the above

0.2 points

QUESTION 3

1. Which of the following investments relate to new products or geographic areas, and they involve strategic decisions that could change the fundamental nature of the business.
3. a.Expansion of existing products or markets
5. b.Expansion into new products or markets
7. c.Expansion of existing products or markets
9. d.a & c only
11. e.None of the above

0.2 points

QUESTION 4

1. Ultimately, the best method for accepting or rejecting an investment project is
3. a.Net Present Value (NPV)
5. b.Internal Rate of Return (IRR)
7. c.Modified Internal Rate of Return (MIRR)
9. d.Payback Period
11. e.Discounted Payback Period

0.2 points

QUESTION 5

1. Which of the following are examples of non normal cash flows?
3. a.---+++++
5. b.-+++++++
7. c.-+++-+++
9. d.All of the above
11. e.None of the above

0.2 points

QUESTION 6

1. IRR calculations are usually very accurate in calculating an investment's return
3. True
4. False

0.2 points

QUESTION 7

1. The Modified Internal Rate of Return (MIRR) solves the non normal cash flow problem but not the reinvestment rate problem
3. True
4. False

0.2 points

QUESTION 8

1. Both the IRR and MIRR force a project's NPV to equal zero.
3. True
4. False

0.2 points

QUESTION 9

1. Which of the following is not a procedure for calculating MIRR?
2. a.Using the WACC, discount all negative cash flows to the beginning of the investment (t = 0) and add them together. This will be used as the present value (PV).
4. b.Using the WACC, compound all positive cash flows to the end of the investment timeframe (terminal value or TV) and add them together. This will be use as the future value (FV).
6. c.Enter the interim annual payments (PMT)
8. d.Using a financial calculator, find the rate of return that will make the sum of the PV and FV equal zero.
10. e.All of the above are procedures used for calculating MIRR

0.2 points

QUESTION 10

1. Where mutually exclusive projects are concerned, all projects with an NPV > 0 can be accepted.
3. True
4. False