FIN 215 (FIN 215)

SOPHIA FINANCE MILESTONE 4A What is one disadvantage of NPV as a capital budget method? It can be misleading if inputs like cash flow turn out to be wrong. It is rarely used, so there is disagreement as to what an adequate NPV is. It cannot be used to compare investments with different upfront costs. It does not deliver an overall picture of the gain or loss of implementing a project.

SOPHIA FINANCE MILESTONE 2A/SOPHIA FINANCE MILESTONE 2A Select the best definition of an ordinary annuity. An annuity whose payments can be made at any point during the period An annuity whose payments are made at the beginning of the period An annuity whose payments are made at the end of the period An annuity that makes payments forever

Sophia Principles of Finance Milestone 4 Which of the following is an example of an operational risk for a company that manufactures automobiles? Rising interest rates that affect the terms of car loans, thereby decreasing demand Damage to completed cars held on a storage lot A state tax increase that makes buying and registering a car more expensive A national car rental agency backing out of a contract to buy a certain volume of new cars

SOPHIA FINANCE MILESTONE FINAL >LATEST UPDATE Mason is a financial analyst who specializes in securities. When providing an analysis of securities to which he has a personal connection, he discloses his conflict of interest......................... SUCCESS!

SOPHIA PRINCIPLES OF FINANCE MILESTONE 3 Which of the following is true of portfolio diversification? A diversified portfolio containing positively correlated investments has a higher variance than a portfolio containing a single asset type. A diversified portfolio containing negatively correlated investments has a lower variance than a portfolio containing a single asset type. A diversified portfolio containing positively correlated investments has a lower variance than a port...

SOPHIA FINANCE MILESTONE 4 /SOPHIA FINANCE MILESTONE 4 Which of the following is a goal of working capital management? A construction company is preparing a capital budget and considering four long-term investments. The profitability index of each project is as follows: Project A: 0.34 Project B: 1.12 Project C: 1.26 Project D: 0.93 In theory, which two projects should the company pursue? ...........................

SOPHIA PRINCIPLES OF FINANCE MILESTONE 2-LATEST VERSION 2021