FIN2601 Assignment1 2025 questions and Answers

FIN2601 - Financial Management
Assignment 1: Semester 1, 2025 (With Answers)



1. Which of the following is a primary goal of financial management?

A. Minimizing operating costs

B. Maximizing market share

C. Maximizing shareholder wealth

D. Increasing sales volume

2. The future value of R1,000 invested for 3 years at 10% interest compounded annually is:

A. R1,300

B. R1,331

C. R1,331

D. R1,300.50

3. Which of the following is a disadvantage of the payback period method?

A. Simple to use

B. Ignores cash flows after payback

C. Focuses on liquidity

D. Easy to compare projects

4. If a project has a positive net present value (NPV), it means:

A. The project earns less than the required return

B. The project should be rejected

C. The project adds value and should be accepted

D. The internal rate of return is negative

5. Calculate the present value of R5,000 received in 5 years, discounted at 8% annually.

A. R3,403

B. R3,403.89

C. R3,500

D. R3,700

6. Which of the following is a working capital decision?

A. Deciding to issue new shares

B. Purchasing new machinery