FIN 300 Exam 3 Question and answers
verified to pass 2025
A project has a net present value of zero. Which one of the following best
describes this project? - correct answer ✔The project's cash inflows equal its
cash outflows in current dollar terms.
Accept a project if NPV is - correct answer ✔>0
Accept a project if payback period is - correct answer ✔less than the cutoff
time
Accept if PI is - correct answer ✔>1
Accept the project if IRR is - correct answer ✔greater than the required
return
Accept the project if it pays back on a discounted basis within the - correct
answer ✔cutoff time
Are interest expenses included in the cash flow calculation for capital
budgeting purposes? - correct answer ✔no
costs that have been paid regardless of the decision whether the investment
should be undertaken - correct answer ✔sunk costs
If a project has a net present value equal to zero, then: - correct answer
✔the project earns a return exactly equal to the discount rate
verified to pass 2025
A project has a net present value of zero. Which one of the following best
describes this project? - correct answer ✔The project's cash inflows equal its
cash outflows in current dollar terms.
Accept a project if NPV is - correct answer ✔>0
Accept a project if payback period is - correct answer ✔less than the cutoff
time
Accept if PI is - correct answer ✔>1
Accept the project if IRR is - correct answer ✔greater than the required
return
Accept the project if it pays back on a discounted basis within the - correct
answer ✔cutoff time
Are interest expenses included in the cash flow calculation for capital
budgeting purposes? - correct answer ✔no
costs that have been paid regardless of the decision whether the investment
should be undertaken - correct answer ✔sunk costs
If a project has a net present value equal to zero, then: - correct answer
✔the project earns a return exactly equal to the discount rate
