FINC 3610 Final Exam (Dismukes) 2025 – All Quiz
Questions & Answers
How many different investment criteria did we review in the module, and thus you are responsible for
understanding?
7
An investment should be accepted if the _____________________ is positive and rejected if it is
negative
NPV
Which investment criteria create a % return as their calculated result?
IRR, MIRR, and AAR
Which of the following incremental cash flows do we exclude when determining the cash flows
associated with a project?
sunk costs
Which of the following items are components of the cash flows associated with a project?
All of these items are included when determining a project's cash flows
Which of the following is NOT a potential adjustment to a project's cash flows?
adjust for net working capital changes at the beginning of the project only
Which of the following is true if I sell an asset for less than its book value at the end of the project
the after-tax salvage value will be greater than the sales price
Which of the following incremental cash flows do we include when determining the cash flows
associate with a project?
Changes in net working capital, taxes, opportunity costs
how is working capital calculated
current assets - current liabilities
In which type of risk analysis do I change only one input while keeping all of the others the same?
sensitivity analysis
Questions & Answers
How many different investment criteria did we review in the module, and thus you are responsible for
understanding?
7
An investment should be accepted if the _____________________ is positive and rejected if it is
negative
NPV
Which investment criteria create a % return as their calculated result?
IRR, MIRR, and AAR
Which of the following incremental cash flows do we exclude when determining the cash flows
associated with a project?
sunk costs
Which of the following items are components of the cash flows associated with a project?
All of these items are included when determining a project's cash flows
Which of the following is NOT a potential adjustment to a project's cash flows?
adjust for net working capital changes at the beginning of the project only
Which of the following is true if I sell an asset for less than its book value at the end of the project
the after-tax salvage value will be greater than the sales price
Which of the following incremental cash flows do we include when determining the cash flows
associate with a project?
Changes in net working capital, taxes, opportunity costs
how is working capital calculated
current assets - current liabilities
In which type of risk analysis do I change only one input while keeping all of the others the same?
sensitivity analysis
