运营管理 考试题库krajewski_om9_tif_SuppF

1、Supplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall753SupplementFFinancial Analysis TRUE/FALSE1.The time value of money implies that a dollar in hand today is worth more than a dollar to be received in the future.Answer: TrueReference: Time Value of Mone

2、yDifficulty: EasyKeywords: time value of money2.Discounting is the process by which interest on an investment accumulates, and then earns interest itself for the remainder of the investment period.Answer: FalseReference: Time Value of MoneyDifficulty: ModerateKeywords: compounding interest3.The valu

3、e of an investment at the end of the period over which interest is compounded is called the future value of the investment.Answer: TrueReference: Time Value of MoneyDifficulty: EasyKeywords: future value4.The present value of an investment is the amount that must be invested now to accumulate to a c

4、ertain amount in the future at a specific interest rate.Answer: TrueReference: Time Value of MoneyDifficulty: ModerateKeywords: present value5.The interest rate is also called the discount rate.Answer: TrueReference: Time Value of MoneyDifficulty: ModerateKeywords: interest rate, discount rate6.An a

5、nnuity is a series of payments of a fixed amount for a specified number of years.Answer: TrueReference: Time Value of MoneyDifficulty: EasyKeywords: annuity paymentSupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall7547.Cash flow is the cash that will fl

6、ow into and out of the organization.Answer: TrueReference: Techniques of AnalysisDifficulty: EasyKeywords: cash flow8.Depreciation is not a legitimate cash flow.Answer: TrueReference: Techniques of AnalysisDifficulty: ModerateKeywords: depreciation, cash flow9.Straight-line depreciation is an accele

7、rated depreciation method.Answer: FalseReference: Techniques of AnalysisDifficulty: ModerateKeywords: depreciation, accelerated depreciation, straight-line depreciation10.The advantage of using the modified accelerated cost recovery system (MACRS) for depreciation is that it extends the lives of inv

8、estments, giving a firm a longer period of time before the item must be replaced.Answer: FalseReference: Techniques of AnalysisDifficulty: ModerateKeywords: depreciation, accelerated, cost recovery, MACRS11.The net present value (NPV) method evaluates an investment by calculating the present values

9、of all after-tax total cash flows and then subtracting the original investment amount from their total.Answer: TrueReference: Techniques of AnalysisDifficulty: ModerateKeywords: NPV, net present value, after-tax cash flow12.The hurdle rate is the interest rate that is the highest desired return on a

10、n investment.Answer: FalseReference: Techniques of AnalysisDifficulty: EasyKeywords: hurdle rateSupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall755MULTIPLE CHOICE13.The value of an investment at the end of the period over which interest is compounded

11、is called the: a.time value of money.b.present value of an investment.c.future value of an investment.d.None of the above.Answer: cReference: Time Value of MoneyDifficulty: EasyKeywords: future value, investment14.The amount to be invested now to accumulate to a certain amount in the future at a spe

12、cified interest rate is called the: a.time value of money.b.present value of an investment.c.future value of an investment.d.None of the above.Answer: bReference: Time Value of MoneyDifficulty: EasyKeywords: present value, investment15.An investor puts $10,000 in an account earning 4 percent compoun

13、ded interest. At the end of three years, the account will have a value of:a.less than $11,000.b.between $11,000 and $11,200.c.between $11,200 and $11,400.d.more than $11,400.Answer: cReference: Time Value of MoneyDifficulty: EasyKeywords: future value, investment16.It is estimated that the cost for

14、the first year of college at Massive University, the state school with the best operations management program, will be $60,000 by the time your son is ready to enroll as a student. If prevailing interest rates will average 5 percent, what amount should you invest now to pay his first years tuition e

15、ight years from now?a.Less than $35,000b.Between $35,000 and $38,000c.Between $38,000 and $41,000d.More than $41,000Answer: cReference: Time Value of MoneyDifficulty: ModerateKeywords: present valueSupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall75617

16、.Depreciation: a.is not an allowance for the consumption of capital.b.is not a legitimate cash flow.c.does not act as a tax shield.d.does not consider the salvage value of an item.Answer: bReference: Techniques of AnalysisDifficulty: ModerateKeywords: depreciation18.Which method of analysis does not

17、 consider the time value of money?a.Net present value (NPV)b.Internal rate of return (IRR)c.Paybackd.Future Value of an Investment (FVI).Answer: cReference: Techniques of AnalysisDifficulty: ModerateKeywords: time value, payback, NPV, IRR19.A poultry farmer is interested in purchasing an egg tester

18、that can measure weight, albumin height, yolk color, and Haugh units all at the touch of a button. The unit will cost $6900 and is expected to last 10 years at which point it can be sold for $500 to a farmer in a less stringently controlled egg market. What is the annual depreciation under the strai

19、ght line method?a.$640b.$690c.$50d.$740Answer: aReference: Techniques of AnalysisDifficulty: EasyKeywords: straight-line depreciation20.A poultry farmer is interested in purchasing an industrial egg tester that can measure weight, albumin height, yolk color, and Haugh units all at the touch of a but

20、ton. The unit will cost $6900 and is expected to last 10 years at which point it can be sold for $1000 to a farmer in a less stringently controlled egg market. What is the annual depreciation for year 4 under the MACRS method? A copy of Table F.3 is appended to your exam.a.$862b.$795c.$737d.$680Answ

21、er: bReference: Techniques of AnalysisDifficulty: ModerateKeywords: MACRS, depreciation, modified accelerated cost recoverySupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall75721.Which of the following is an accelerated depreciation method?a.Straight-li

22、ne depreciationb.MACRSc.Net present valued.After-tax cash flowAnswer: bReference: Techniques of AnalysisDifficulty: ModerateKeywords: depreciation, accelerated depreciation22.A flexible manufacturing system is expected to cost $25,000,000 but has present values of after-tax cash flow as shown in the

23、 table. The interest rate used is 10 percent. What is the payback of this investment?Year-After-Tax Cash FlowNet Present Value of After-Tax Cash Flow1$11,000,000$10,000,1002$9,000,000$7,437,6003$7,000,000$5,259,8004$5,000,000$3,415,0005$3,000,000$1,862,700a.Less than two yearsb.Between two and three

24、 yearsc.Between three and four yearsd.More than four yearsAnswer: bReference: Techniques of AnalysisDifficulty: ModerateKeywords: paybackFILL IN THE BLANK23.The _ is the concept that a dollar in hand today is worth more than a dollar to be received in the future.Answer: time value of moneyReference:

25、 Time Value of MoneyDifficulty: EasyKeywords: time value of money24.The process by which interest on an investment accumulates and then earns interest itself for the remainder of the investment period is called _.Answer: compounding interestReference: Time Value of MoneyDifficulty: ModerateKeywords:

26、 compounding interestSupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall75825.The value of an investment at the end of the period over which interest is compounded is called the _.Answer: future value of an investmentReference: Time Value of MoneyDifficu

27、lty: ModerateKeywords: future value, investment26.The amount that must be invested now to accumulate to a certain amount in the future at a specified interest rate is called the _.Answer: present value of an investmentReference: Time Value of MoneyDifficulty: ModerateKeywords: present value, investm

28、ent27.A(n) _ is a series of payments of a fixed amount for a specified number of years.Answer: annuityReference: Time Value of MoneyDifficulty: ModerateKeywords: annuity payments28.Cash flows should be converted to _ amounts before applying the net present value, payback, or internal rate of return

29、method to them.Answer: after-taxReference: Time Value of MoneyDifficulty: ModerateKeywords: cash flow, after-tax cash flow29._ is the cash that will flow into and out of the organization.Answer: Cash flowReference: Techniques of AnalysisDifficulty: ModerateKeywords: cash flow30._ is an allowance for

30、 the consumption of capital.Answer: DepreciationReference: Techniques of AnalysisDifficulty: ModerateKeywords: depreciation, allowance31.The _ method of calculating annual depreciation is the simplest, and usually is adequate for internal planning purposes.Answer: straight-lineReference: Techniques

31、of AnalysisDifficulty: ModerateKeywords: straight-line depreciationSupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall75932.Since 1986, the only acceptable accelerated depreciation method is the _.Answer: Modified Accelerated Cost Recovery System (MACRS)

32、Reference: Techniques of AnalysisDifficulty: ModerateKeywords: accelerated depreciation, Modified Accelerated Recovery, MACRS33.The cash flow from the sale or disposal of plant and equipment at the end of a projects life is its _.Answer: salvage valueReference: Techniques of AnalysisDifficulty: Mode

33、rateKeywords: salvage value34.The _ is the interest rate that is the lowest desired return on an investment.Answer: hurdle rateReference: Techniques of AnalysisDifficulty: ModerateKeywords: hurdle rate35.The _ is the discount rate that makes the NPV of a project zero.Answer: internal rate of return,

34、 IRRReference: Techniques of AnalysisDifficulty: ModerateKeywords: internal rate of return, IRR36.The _ is used to evaluate projects by calculating the amount of time that will elapse before the total of after-tax cash flows will equal the initial investment.Answer: payback methodReference: Techniqu

35、es of AnalysisDifficulty: ModerateKeywords: payback method37.The term _ is often used to describe the common U.S. business practice of focusing on short-term results from low-risk projects via analysis by NPV or IRR calculations.Answer: managing by the numbersReference: Techniques of AnalysisDifficu

36、lty: ModerateKeywords: managing by the numbersSHORT ANSWERS38.Explain the time-value-of-money concept.Answer: Basically, a dollar in hand today is worth more than a dollar to be received in the future.Reference: Time Value of MoneyDifficulty: EasyKeywords: time value of moneySupplement F Financial AnalysisCopyright 2010 Pearson Education, Inc. Publishing as Prentice Hall76039.Describe the basic techniques of financial analysis.Answer: The three techniques discussed in this textbook are net present value, internal rate of return, and payback. Net present value