{"id":11353,"date":"2021-10-27T02:10:53","date_gmt":"2021-10-27T02:10:53","guid":{"rendered":"https:\/\/assignmenttutors.net\/blog\/multiple-choice-accounting-homework-help\/"},"modified":"2021-10-27T02:10:53","modified_gmt":"2021-10-27T02:10:53","slug":"multiple-choice-accounting-homework-help","status":"publish","type":"post","link":"https:\/\/assignmenttutors.net\/blog\/multiple-choice-accounting-homework-help\/","title":{"rendered":"Multiple choice | Accounting homework help"},"content":{"rendered":"
\n

1. \u00a0If the NPV of project A is +$30 and that of project B is -$60, then the NPV of the combined\u00a0<\/p>\n

project is: \u00a0<\/p>\n

a. +$30\u00a0<\/p>\n

b. -$60\u00a0<\/p>\n

c. -$30\u00a0<\/p>\n

d. None of the above\u00a0<\/p>\n

\u00a0<\/p>\n

2. \u00a0You are given a job to make a decision on project X, which is composed of three independent projects A, B, and C which have NPVs of +$70, -$40 and +$100, respectively. How would you go about making the decision about whether to accept or reject the project? \u00a0<\/p>\n

a. Accept the firm’s joint project as it has a positive NPV\u00a0<\/p>\n

b. Reject the joint project\u00a0<\/p>\n

c. Break up the project into its components: accept A and C and reject B\u00a0<\/p>\n

d. None of the above\u00a0<\/p>\n

\u00a0<\/p>\n

3. If the NPV of project A is +$120, and that of project B is -$40 and that of project C is +$40, \u00a0what is the NPV of the combined project? \u00a0<\/p>\n

a. +$100\u00a0<\/p>\n

b. -$40\u00a0<\/p>\n

c. +$70\u00a0<\/p>\n

d. +$120\u00a0<\/p>\n

\u00a0<\/p>\n

4. The net present value of a project depends upon: \u00a0<\/p>\n

a. Company’s choice of accounting method\u00a0<\/p>\n

b. Manager’s tastes and preferences\u00a0<\/p>\n

c. Project’s cash flows and opportunity cost of capital\u00a0<\/p>\n

d. All of the above\u00a0<\/p>\n

\u00a0<\/p>\n

5. Which of the following investment rules may not use all possible cash flows in its\u00a0<\/p>\n

calculations? \u00a0<\/p>\n

a. NPV\u00a0<\/p>\n

b. Payback period\u00a0<\/p>\n

c. IRR\u00a0<\/p>\n

d. All of the above\u00a0<\/p>\n

\u00a0<\/p>\n

6. The payback period rule: \u00a0<\/p>\n

a. Varies the cut-off point with the interest rate\u00a0<\/p>\n

b. Determines a cut-off point so that all projects accepted by the NPV rule will be accepted by the payback period rule\u00a0<\/p>\n

c. Requires an arbitrary choice of a cut-off point\u00a0<\/p>\n

d. Both A and C\u00a0<\/p>\n

\u00a0<\/p>\n

7. The payback period rule accepts all projects for which the payback period is: \u00a0<\/p>\n

a. Greater than the cut-off value\u00a0<\/p>\n

b. Less than the cut-off value\u00a0<\/p>\n

c. Is positive\u00a0<\/p>\n

d. An integer\u00a0<\/p>\n

\u00a0<\/p>\n

8. The main advantage of the payback rule is: \u00a0<\/p>\n

a. Adjustment for uncertainty of early cash flows\u00a0<\/p>\n

b. It is simple to use\u00a0<\/p>\n

c. Does not discount cash flows\u00a0<\/p>\n

d. Both A and C\u00a0<\/p>\n

\u00a0<\/p>\n

9. The following are disadvantages of using the payback rule except: \u00a0<\/p>\n

a. The payback rule ignores all cash flow after the cutoff date\u00a0<\/p>\n

b. The payback rule does not use the time value of money\u00a0<\/p>\n

c. The payback period is easy to calculate and use\u00a0<\/p>\n

d. The payback rule does not have the value additive property\u00a0<\/p>\n

\u00a0<\/p>\n

10. Which of the following statements regarding the discounted payback period rule is true? \u00a0<\/p>\n

a. The discounted payback rule uses the time value of money concept\u00a0<\/p>\n

b. The discounted payback rule is better than the NPV rule\u00a0<\/p>\n

c. The discounted payback rule considers all cash flows\u00a0<\/p>\n

d. The discounted payback rule exhibits the value additive property\u00a0<\/p>\n

\u00a0<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

1. \u00a0If the NPV of project A is +$30 and that of project B is -$60, then the NPV of the combined\u00a0 project is: \u00a0 a. +$30\u00a0 b. -$60\u00a0 c. -$30\u00a0 d. None of the above\u00a0 \u00a0 2. \u00a0You are given a job to make a decision on project X, which is composed of three […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-11353","post","type-post","status-publish","format-standard","hentry","category-homework-help"],"_links":{"self":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/11353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/comments?post=11353"}],"version-history":[{"count":0,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/posts\/11353\/revisions"}],"wp:attachment":[{"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/media?parent=11353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/categories?post=11353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/assignmenttutors.net\/blog\/wp-json\/wp\/v2\/tags?post=11353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}