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37. Which of the following is a likely errors in the calculation of net present value?
| a. | the amount of cash flows |
| b. | the timing of cash flows |
| c. | the discount rate. |
| d. | all of the above |
38. Which statement is trueconcerning depreciation?
| a. | Depreciation does not affect taxable income. |
| b. | Depreciation should be considered in the cash flow analysis. |
| c. | Depreciation is never relevant for decision making. |
| d. | Depreciation is never affected by income tax laws. |
39. Which of the following is a useful feature of spreadsheet programs?
| a. | Spreadsheet programs reduce the errors in predicting the amounts of future cash flows. |
| b. | Spreadsheet programs reduce the errors in predicting the timing of future cash flows. |
| c. | Spreadsheet programs reduce the errors in predicting the discount rate. |
| d. | Spreadsheet programs help the user see the effect on the net present value of changes in assumptions and estimates. |
40. Which of the following is the discount rate that equates the net present value of a series of cash flows to zero?
| a. | investment rate of return. |
| b. | external rate of return. |
| c. | internal rate of return. |
| d. | international rate of return. |
41. Which of the following can be calculated using built-in functions in spreadsheet programs?
| a. | external rate of return. |
| b. | internal rate of return. |
| c. | investment rate of return. |
| d. | international rate of return. |
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