More cards in this set

Card 6

Front

Your grandmother has promised to give you £5,000 when you graduate from university. She is expecting you to graduate two years from now. What happens to the present value of this gift if you delay your graduation by one year and graduate three years

Back

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Card 7

Front

When mutually exclusive projects have different lives, the project that should be selected will have the:

Back

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Card 8

Front

A project's payback period is determined to be 4 years. If it is later discovered that additional cash flows will be generated in years 5 and 6, then:

Back

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Card 9

Front

Working capital will affect incremental cash flows if:

Back

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Card 10

Front

A firm is considering expanding its current operations and has determined the internal rate of return on that expansion is 12.2%. The firm's WACC is 11.8%. Given this, you know the:

Back

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Card 11

Front

If the "life" of a potential investment is 5 years and its discounted payback is also 5 years, the investment's NPV is:

Back

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