FIN 300 Exam 3 Chapter 9 Conceptual
Practice Questions and answers verified
to pass 2025
The length of time a firm must wait to recoup, in present value terms, the
money it has in invested in a project is referred to as the: - correct answer
✔Discounted payback period
The length of time a firm must wait to recoup the money it has invested in a
project is called the: - correct answer ✔Payback period
A project's average net income divided by its average book value is referred to
as the project's average: - correct answer ✔Accounting Return (AAR)
Discount rate which causes the net present value of a project to equal zero. -
correct answer ✔Internal Rate of Return (IRR)
You are viewing a graph that plots the NPVs of a project to various discount
rates that could be applied to the project's cash flows. What is the name given
to this graph? - correct answer ✔NPV Profile
There are two distinct discount rates at which a particular project will have a
zero net present value. In this situation, the project is said to: - correct answer
✔have multiple rates of return
If a firm accepts Project A it will not be feasible to also accept Project B
because both projects would require the simultaneous and exclusive use of
the same piece of machinery. These projects are considered to be: - correct
answer ✔mutually exclusive
Practice Questions and answers verified
to pass 2025
The length of time a firm must wait to recoup, in present value terms, the
money it has in invested in a project is referred to as the: - correct answer
✔Discounted payback period
The length of time a firm must wait to recoup the money it has invested in a
project is called the: - correct answer ✔Payback period
A project's average net income divided by its average book value is referred to
as the project's average: - correct answer ✔Accounting Return (AAR)
Discount rate which causes the net present value of a project to equal zero. -
correct answer ✔Internal Rate of Return (IRR)
You are viewing a graph that plots the NPVs of a project to various discount
rates that could be applied to the project's cash flows. What is the name given
to this graph? - correct answer ✔NPV Profile
There are two distinct discount rates at which a particular project will have a
zero net present value. In this situation, the project is said to: - correct answer
✔have multiple rates of return
If a firm accepts Project A it will not be feasible to also accept Project B
because both projects would require the simultaneous and exclusive use of
the same piece of machinery. These projects are considered to be: - correct
answer ✔mutually exclusive
