Busi 100 Test Questions with Verified Correct
Answers
Hsieh LLC is considering a new project. The initial cash outflows are $8,000. The Company
believes the project will yield cash inflows of $1,632 in year 1, $1,632 in year 2, $3,264 in
year 3, and $4,352 in year 4. Assuming an annual discount rate of 10%, calculate the
present value of future cash flows for the project.
8,257.17
Nguyen Partners is considering a new project. The initial cash outflows are $19,000. The
Company believes the project will yield cash inflows of $2,242 in year 1, $6,726 in year 2,
$5,605 in year 3, and $7,847 in year 4. Assuming an annual discount rate of 9%, calculate
the project's net present value.
1,394.88
Lin Group is considering a new project. The initial cash outflows are $14,000. The
Company believes the project will yield cash inflows of $0 in year 1, $1,596 in year 2, $7,182
in year 3, and $7,182 in year 4. Assuming an annual discount rate of 5%, calculate the
present value of future cash flows for the project.
13,560.35
Cryer Incorporated is considering a new project. The initial cash outflows are $6,000. The
Company believes the project will yield cash inflows of $1,008 in year 1, $2,016 in year 2,
$1,344 in year 3, and $2,352 in year 4. Assuming an annual discount rate of 10%, calculate
the project's net present value.
, -801.3
According to Ayn Rand, money is the foundation of an immoral society.
False
John Burr Williams defines investment value of company stock as the present worth of that
company's future revenues.
False
Williams Group started a new business on September 1, 2021. That same day, Williams
Group also received $430,000 of cash from issuing common stock and borrowed $230,000
from a friend. On September 1, 2021 Williams Group also purchased equipment for
$230,400. The equipment has a useful life of 72 months. On September 1, 2021, Williams
also paid $150,000 of cash to rent office space for a 60 month period. During 2021, the
Company provided services valued at $158,400 and had collected $126,720 of that amount
at year-end. The company will collect the remaining portion in the following year. The
company's payroll for 2021 was $83,800, which was paid in full during 2021.
Use this information to find the company's revenues in 2021?
158,400
Williams Group started a new business on September 1, 2021. That same day, Williams
Group also received $430,000 of cash from issuing common stock and borrowed $230,000
from a friend. On September 1, 2021 Williams Group also purchased equipment for
$230,400. The equipment has a useful life of 72 months. On September 1, 2021, Williams
also paid $150,000 of cash to rent office space for a 60 month period. During 2021, the
Answers
Hsieh LLC is considering a new project. The initial cash outflows are $8,000. The Company
believes the project will yield cash inflows of $1,632 in year 1, $1,632 in year 2, $3,264 in
year 3, and $4,352 in year 4. Assuming an annual discount rate of 10%, calculate the
present value of future cash flows for the project.
8,257.17
Nguyen Partners is considering a new project. The initial cash outflows are $19,000. The
Company believes the project will yield cash inflows of $2,242 in year 1, $6,726 in year 2,
$5,605 in year 3, and $7,847 in year 4. Assuming an annual discount rate of 9%, calculate
the project's net present value.
1,394.88
Lin Group is considering a new project. The initial cash outflows are $14,000. The
Company believes the project will yield cash inflows of $0 in year 1, $1,596 in year 2, $7,182
in year 3, and $7,182 in year 4. Assuming an annual discount rate of 5%, calculate the
present value of future cash flows for the project.
13,560.35
Cryer Incorporated is considering a new project. The initial cash outflows are $6,000. The
Company believes the project will yield cash inflows of $1,008 in year 1, $2,016 in year 2,
$1,344 in year 3, and $2,352 in year 4. Assuming an annual discount rate of 10%, calculate
the project's net present value.
, -801.3
According to Ayn Rand, money is the foundation of an immoral society.
False
John Burr Williams defines investment value of company stock as the present worth of that
company's future revenues.
False
Williams Group started a new business on September 1, 2021. That same day, Williams
Group also received $430,000 of cash from issuing common stock and borrowed $230,000
from a friend. On September 1, 2021 Williams Group also purchased equipment for
$230,400. The equipment has a useful life of 72 months. On September 1, 2021, Williams
also paid $150,000 of cash to rent office space for a 60 month period. During 2021, the
Company provided services valued at $158,400 and had collected $126,720 of that amount
at year-end. The company will collect the remaining portion in the following year. The
company's payroll for 2021 was $83,800, which was paid in full during 2021.
Use this information to find the company's revenues in 2021?
158,400
Williams Group started a new business on September 1, 2021. That same day, Williams
Group also received $430,000 of cash from issuing common stock and borrowed $230,000
from a friend. On September 1, 2021 Williams Group also purchased equipment for
$230,400. The equipment has a useful life of 72 months. On September 1, 2021, Williams
also paid $150,000 of cash to rent office space for a 60 month period. During 2021, the
