FINC 306 FINAL Exam 2026|2027 Advanced Practice Questions and
Answers with Complete A+ Solutions 100% Correct!!!
what if there are resource constraints - Correct Answer -resources are often limited, determining the
value maximizing set of projects under resource constraints is a special case of investing in mutually
exclusive projects
the level annual cash flow that has the same present value as the cash flows of a project; computed using
the same number of periods as the project - Correct Answer -EAA
NPV decision rule - Correct Answer -accept the project is nPV is positive; reject otherwise
which of the following is correct about net income and cash flow? - Correct Answer -net income can be
greater than, equal to, or less than cash flow.
how should one account for the 5000 allocation of managerial salaries? - Correct Answer -ignore it - not
incremental
where does Accounts receivable appeal on a firms financial statements - Correct Answer -assets
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, where does accounts payable appeal on a firms financial statements - Correct Answer -liability
where does inventory appear on a firms financial statements - Correct Answer -asset
define Net Working capital (NWC) as (A/R +Inventory) - A/P. IF this number is positive we can t think of
NWC as - Correct Answer -an asset
Suppose a project requires an increase in Property, Plant, and Equipment. How will this affect
Incremental cash flow? - Correct Answer -outflow
suppose a project requires an increase in Net Working Capital. How will this affect incremental cash flow?
- Correct Answer -outflow
suppose net working capital remains constant from one year to the next. How will this affect incremental
cash flow - Correct Answer -no effect
2|Page
Answers with Complete A+ Solutions 100% Correct!!!
what if there are resource constraints - Correct Answer -resources are often limited, determining the
value maximizing set of projects under resource constraints is a special case of investing in mutually
exclusive projects
the level annual cash flow that has the same present value as the cash flows of a project; computed using
the same number of periods as the project - Correct Answer -EAA
NPV decision rule - Correct Answer -accept the project is nPV is positive; reject otherwise
which of the following is correct about net income and cash flow? - Correct Answer -net income can be
greater than, equal to, or less than cash flow.
how should one account for the 5000 allocation of managerial salaries? - Correct Answer -ignore it - not
incremental
where does Accounts receivable appeal on a firms financial statements - Correct Answer -assets
1|Page
, where does accounts payable appeal on a firms financial statements - Correct Answer -liability
where does inventory appear on a firms financial statements - Correct Answer -asset
define Net Working capital (NWC) as (A/R +Inventory) - A/P. IF this number is positive we can t think of
NWC as - Correct Answer -an asset
Suppose a project requires an increase in Property, Plant, and Equipment. How will this affect
Incremental cash flow? - Correct Answer -outflow
suppose a project requires an increase in Net Working Capital. How will this affect incremental cash flow?
- Correct Answer -outflow
suppose net working capital remains constant from one year to the next. How will this affect incremental
cash flow - Correct Answer -no effect
2|Page
