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1.A set of numbers that is __ will have a __standard deviation. a. consistent; low b. consistent; high perfectly consistent; nonzero d. inconsistent; low 2.In a direct lease, the user-lessee first determines all except which of the following? a.The terms of the lease b.Which manufacturer will supply the equipment What equipment will be leased d. what price will be paid for the asset 3. The choice to accept or reject projects based on the payback period _. a.is a subjective decision b.will always give the same results as when using the internal rate of return method c.is an objective decision d.will always give the same results as when using the net present value method 4. Based upon the following cash flows, should Chipper Nipper Cookie Company introduce a new product, Rolling In Dough Pies? The initial investment is $180,000 and the cost of capital is 11.5%. Years Cash Flows 1 $80,000 2 95,000 3 95,000 4 110,000 5 110,000 6 110,000 (Points: 1) A. Yes, the rounded npv is $228, 940 and the irr is 46.62% B. Yes, the rounded npv is $75,428.63 and the irr is 12.27% C. No, the rounded npv is-$57,277.32 and the irr is 8.75% D. No, the rounded npv is -$221,275.39 and the irr is 9.97% 5. What is the equal annual annuity for Scorch & Burn Fire Extinguishers if their cost of capital is 8% and the initial investment is $75,000 (rounded)? YEAR CASH FLOWS 1 25000 2 25000 3 45000 a. $6,271 b. $2,058 C. $5,304 d. $4,157

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