BUS FIN301 Quiz - Financial Management | Score 30/30 | Brigham Young University, Idaho

W06 Quiz: Financial Management
Due
Points 30
Questions 15
Available
Time Limit None

Instructions
Overview
Task: Complete this quiz.
Purpose: Assess your knowledge of capital budgeting, cash flows, valuation NPV, payback, and
IRR.

Instructions
1. Review this week's material.
2. Complete this open-book and open-resources quiz.
This is an individual exercise. Do not work on this activity with anyone else.

NOTE: The answers to this quiz will be visible after the due date.


Attempt History
Attempt Time Score
LATEST Attempt 1 minutes 30 out of 30

Correct answers will be available on .

Score for this quiz: 30 out of 30
Submitted
This attempt took minutes.


Question 1
pts

What is the internal rate of return of a project with the following cash flows? Invest $235,000. Get
back the following in years 1–4: 100,000; 75,000; 100,000; 75,000.

14.01%
18.71%
13.26%
12.99%

, Question 2
pts

Calculate the NPV.

Investment amount: (8,250,000). Cash flows: Yr1: 2,500,000; Yr2: 3,500,000; Yr3: 4,500,000; Yr4:
5,500,000. Cost of capital: 24%

0.00
32.019.00
-456,331.00
728,951.00


Question 3
pts

For the following, calculate the NPV.

Investment amount: (2,500,000). Cash flows: Yr1: 175,000; Yr2: 588,000; Yr3: 1,400,000; Yr4:
1,350,000. Cost of capital: 17%

241,333.00
35,980.00
0.00
-326,339.00


Question 4
pts

Calculate the payback period for the following investment: Total investment up front: ($5,000). Cash
flows: Yr1: 4,000; Yr2: 500; Yr3: 1,000.

2.5 years
3 years
Cannot calculated
2 years


Question 5
pts

Calculate they payback period for the following investment:

Initial investment: $10,000. Cash flows: Yr1: 2,000; Yr2: 3,000; Yr3: 3,000; Yr4: 2,000; Yr5: 5,000.

5 years