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FIN 575 Final Exam (Latest) 1

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1. During the project initiation, a project charter is created. The project charter should include which of the following?  Project managers expenses  Analysis of budget  Selection of the senior project manager  Projects high-level deliverables 2. A project's budget should be based on a company’s  strategy and financial goals  profitability  financial goals and equity  debt load and equity 3. Earned value management is a technique used to integrate projects  resources  scope, schedule, and resources  schedule, costs, and benefits  costs and profits 4. Bill’s Billiards has total assets of $8 million and a total asset turnover of 2.9 times. If the return on assets is 11%, what is

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FIN 575 Final Exam
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FIN 575 Final Exam (Latest)


1. During the project initiation, a project charter is created. The project
charter should include which of the following?

 Project managers expenses
 Analysis of budget
 Selection of the senior project manager
 Projects high-level deliverables



2. A project's budget should be based on a company’s

 strategy and financial goals
 profitability
 financial goals and equity
 debt load and equity



3. Earned value management is a technique used to integrate projects

 resources
 scope, schedule, and resources
 schedule, costs, and benefits
 costs and profits

, 4. Bill’s Billiards has total assets of $8 million and a total asset
turnover of 2.9 times. If the return on assets is 11%, what is Bill's profit
margin?

 11%
 4.10%
 2.50%
 3.79%



5. What are the acceptance criteria for NPV?

 If the NPV is less that $0, accept the project.
 If the NPV is greater than $0, accept the project.
 If the IRR is equal to 0%, reject the project.
 If the NPV is equal to the discounted payback, accept the project.



6. The risk response plan answers what question?

 What can be done if risk occurs? What is the backup plan?
 What are project costs?
 There is no need to plan for risk seldom occurs in a project.
 How risk is to be managed



7. For the most recent year, Cal’s Cats had sales of $380,000, cost of
goods sold of $93,000, depreciation expense of $47,000, and additions to
retained earnings of $61,420. The firm had $52,000 in interest expense,
and 34% tax rate. What were the times interest earned ratio?

 2.2
 5.8
 4.61
 2.8

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