Answer Happy

3. Which of the following projects should you turn down?
The project IRR is 14% and your requirement is that projects
meet a 9% threshold.
The initial investment is $10mm and it produces 4 years of cash
flows of $3mm per year. Your cost of capital is 9%.
The IRR is only 3%, but it has a positive NPV.
The project has a positive NPV of only $1
9. Assume Elon Musk wants to consider building a new
motorcycle factory and is deciding between California, Mexico, and
Texas. We would refer to these project options as:
operating
dependent
independent
extraordinary
mutually exclusive
10. When evaluating a project, the best metrics to use
are:
NPV and payback period
FASB and PI
SVA and NRR
Independent and exclusive
NPV and IRR
11. A capital expenditure is:
an expenditure that is greater than 5% of revenue.
any significant expenditure by a company.
an outlay of funds for a project that produces benefits that
last for greater than one year.
equal to property plant and equipment.