CTP Post Test | 95 Questions with 100% Correct Answers | Updated & Verified

A company is comparing two potential three-year investments at a discount rate of 12%. Project A costs $3,500 but should generate a return of $5,000 at the end of the third year, and Project B costs $5,000 but should generate a return of $7,800 at the end of the third year. What is the net present value (NPV) for each project? - Project A: $58.97; Project B: $552.00 Controlled disbursement for a company is important because it - assists in determining the day's funding requirements. The Depository Trust and Clearing Corporation (DTCC) - brings efficiency by netting transactions between brokers, dealers, mutual funds, insurance companies and other large investors. A company has the option to lease or buy. If it leases, it does not intend to keep the asset after the lease expires. If it buys, it intends to sell the asset after it is fully depreciated. The company should consider ALL of the following when making this calculation EXCEPT - length of the lease compared to its estimated useful life Which of the following foreign currency transactions will yield a profit when the price of the underlying foreign currency rises above the strike price? - A buyer of a call option on the currency Which of the following reflects a win-win approach to improving cash flow? - Focus on the beginning of the operating cycle (purchase of resources through sale of goods or services) If an investment bank offers both underwriting/distribution functions and investment advisory or management functions, which situation would be acceptable under U.S. Securities and Exchange regulations and ethics guidelines with regard to material non-public information (MNPI)? - "Bringing someone over the wall" to provide value to underwriting, who does not comment on MNPI until it has been made public.