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Description Quiz 04 is based on lecture 05 Capital Budgeting. There are 2 attempts only for
each quiz. Each attempt has a time limit of 1 hour. Each quiz has a weight of 2% of
the total mark. The quiz deadline is on Wednesday (19 April) at 5pm.
Instructions
Timed Test This test has a time limit of 1 hour.This test will save and submit automatically when
the time expires.
Warnings appear when half the time, 5 minutes, 1 minute, and 30 seconds
remain.
Multiple This test allows 2 attempts. This is attempt number 1.
Attempts
Force This test can be saved and resumed at any point until time has expired. The timer
Completion will continue to run if you leave the test.
QUESTION 1
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Net present value (NPV) for this project is
-$120 million
$10.5 million
$15.03 million
1 of 8 4/18/2017 12:01 PM
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42 minutes,58 seconds.
Remaining Time:
QUESTION 2
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Shall Mark invest in this project?
Accept
Reject
Indifferent
Cannot be determined
QUESTION 3
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Without calculations, internal rate of return (IRR) for this project is
Equal to 7%
Greater than 7%
Less than 7%
Cannot be determined
QUESTION 4
2 of 8 4/18/2017 12:01 PM
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42 minutes,58 seconds.
Remaining Time:
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Modified internal rate of return (MIRR) for this project is
3.33%
7.00%
7.53%
7.93%
QUESTION 5
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Payback period (PBP) for this project is
3.00 years
4.00 years
4.86 years
5.00 years
QUESTION 6
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Discounted payback period (DPBP) for this project is
3.00 years
4.00 years
3 of 8 4/18/2017 12:01 PM
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42 minutes,58 seconds.
Remaining Time:
QUESTION 7
Mark is going to invest $600 million in a new project that will generate $150 million at
the end of each year for the following five years. The weighted average cost of capital is
7% per annum.
Profitability index (PI) for this project is
0.97
1.00
1.03
1.25
QUESTION 8
Greater than
Less than
Equal to
QUESTION 9
Greater than
Less than
Equal to
4 of 8 4/18/2017 12:01 PM
Take Test: Quiz 04 (Lecture 05) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...
42 minutes,58 seconds.
Remaining Time:
Greater than
Less than
Equal to
QUESTION 11
QUESTION 12
Greater than
Less than
Equal to
QUESTION 13
5 of 8 4/18/2017 12:01 PM
Take Test: Quiz 04 (Lecture 05) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...
42 minutes,58 seconds.
Remaining Time:
Longer than
Shorter than
Equal to
QUESTION 14
Greater than
Less than
Equal to
QUESTION 15
Greater than
Less than
Equal to
QUESTION 16
6 of 8 4/18/2017 12:01 PM
Take Test: Quiz 04 (Lecture 05) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...
42 minutes,58 seconds.
Remaining Time:
Greater than
Less than
Equal to
QUESTION 17
QUESTION 18
Greater than
Less than
Equal to
QUESTION 19
7 of 8 4/18/2017 12:01 PM
Take Test: Quiz 04 (Lecture 05) 49098-2017-AUTUMN-CITY https://online.uts.edu.au/webapps/assessment/take/launch.jsp?course_ass...
42 minutes,58 seconds.
Remaining Time:
Greater than
Less than
Equal to
QUESTION 20
Greater than
Less than
Equal to
8 of 8 4/18/2017 12:01 PM