Fourth:
A. W
B. X
C. Y
D. Z
Which of the following would be an adjustment required to obtain the cash flow figure from the profit figure?
A. Depreciation
B. Overdraft interest
C. Bank charges
D. Contribution
A company is considering investing in a new piece of machinery costing $100,000. The discount rate is 8% and net cash flows are as follows. What is the discounted payback period?The discount rates are as follows:
A. 2 years and 30 weeks
B. 3 years and 2 weeks
C. 2 years and 38 weeks
D. 2 years and 50 weeks
What does IRR calculate?
A. The time period by which an investment will produce the required rate of return
B. What the Net Present Value is at a given cost of capital
C. Whether or not to invest in a project
D. The rate of return which will result in an NPV of zero