Reference no: EM132601629

Question 1: Depreciation is included as a cost in which of the following techniques,

A. Accounting rate of return

B. Net present value

C. Internal rate of return

D. None of the above

Question 2: The principal reason for the existence of leasing is that:

A. Intermediate-term loans are difficult to obtain.

B. This is a type of financing unaffected by changes in tax law.

C. Companies, financial institutions, and individuals derive different benefits from owning assets.

D. Leasing is a renewable source of intermediate-term funds.

Question 3: To say that there is "asymmetric information" in the issuing of common stock or debt means that:

A. Investors have nearly perfect information.

B. The markets have nearly perfect information

C. Investors have more accurate information than management has.

D. Management has more accurate information than investors have.

E. All

Question 4: If two alternative proposals are such that the acceptance of one shall exclude the possibility of the acceptance of another then such decision making will lead to,

A. Mutually exclusive decisions

B. Accept reject decisions

C. Contingent decisions

D. None of the above

Question 5: The concepts of present value and future value are:

A. Directly related to each other

B. Not related to each other

C. Proportionately related to each other

D. Inversely related to each other.