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21.
Changes in the net working capital requirements:
22.
Which one of the following is a project cash inflow? Ignore any tax effects.
23.
Net working capital:
24.
The operating cash flow of a cost cutting project:
25.
Pro forma statements for a proposed project should:
I. be compiled on a stand-alone basis.
II. include all the incremental cash flows related to the project.
III. generally exclude interest expense.
IV. include all project-related fixed asset acquisitions and disposals.
26.
Which one of the following statements is correct?
27.
A company that utilizes the MACRS system of depreciation:
28.
Morris Motors just purchased some MACRS 5-year property at a cost of
$216,000. Which one of the following will correctly give you the book value
of this equipment at the end of year 2?
29.
Keyser Petroleum just purchased some equipment at a cost of $67,000.
What is the proper methodology for computing the depreciation expense for
year 2 if the equipment is classified as 5-year property for MACRS?
30.
The current book value of a fixed asset that was purchased two years ago is
used in the computation of which one of the following?
31.
The net book value of equipment will:
32.
Three years ago, Knox Glass purchased a machine for a 3-year project. The
machine is being depreciated straight-line to zero over a 5-year period.
Today, the project ended and the machine was sold. Which one of the
following correctly defines the aftertax salvage value of that machine? (T
represents the relevant tax rate)
33.
Which one of the following is a correct method for computing the operating
cash flow of a project assuming that the interest expense is equal to zero?
34.
The operating cash flow for a project should exclude which one of the
following?
35.
The bottom-up approach to computing the operating cash flow applies only
when:
36.
The top-down approach to computing the operating cash flow:
37.
Increasing which one of the following will increase the operating cash flow
assuming that the bottom-up approach is used to compute the operating
cash flow?
38.
Which one of the following statements is correct concerning bid prices?
39.
Dan is comparing three machines to determine which one to purchase. The
machines sell for differing prices, have differing operating costs, differing
machine lives, and will be replaced when worn out. Which one of the
following computational methods should Dan use as the basis for his
decision?
40.
The equivalent annual cost method is useful in determining:
