Question : 41) When the present value of expected cash inflows from a : 1196185

41)

When the present value of expected cash inflows from a project equals the present value of expected cash outflows of a project, the discount rate is the 41)

______ A)

net present value rate. B)

universal rate. C)

required rate of return. D)

required rate. E)

inflation rate.

Use the information below to answer the following question(s).

Wet Water Company drills residential and commercial wells. The company is in the process of analyzing the purchase of a new drill. Information on the proposal is provided below:

Initial investment:

Asset $80,000

Working capital $16,000

Operations (per year for four years):

Cash receipts $80,000

Cash expenditures$44,000

Disinvestment: Salvage value of drill$

8,000

Discount rate 10 percent

42)

What is the net present value of the investment? 42)

______ A)

$1,496 B)

$(25,540) C)

$52,600 D)

$26,084 E)

$44,000

43)

In what range is the internal rate of return? 43)

______ A)

16 percent to 20 percent B)

12 percent to 16 percent C)

over 24 percent D)

8 percent to 12 percent E)

none of the above

44)

Brown Corporation recently purchased a new machine for $339,013.20. The old equipment has a remaining life of 10 years. Net cash flows will be $60,000 per year.

What is the internal rate of return? 44)

______ A)

20 percent B)

24 percent C)

16 percent D)

12 percent E)

none of the above

45)

Soda Manufacturing Company provides vending machines for soft-drink manufacturers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of 3 years, and the new equipment has a value of $52,650 with a three-year life. The expected additional cash inflows are $25,000 per year.

What is the internal rate of return? 45)

______ A)

20 percent B)

16 percent C)

8 percent D)

10 percent E)

none of the above

46)

Project ABC is under consideration. Annual cash flows equal $50,000 per year for 5 years. During the first three years the required rate of return is 2 percent. During the last two years the required rate of return is 10 percent.

What is the present value of cash inflows? 46)

______ A)

$247,730 B)

$209,350 C)

$250,000 D)

$235,650 E)

none of the above

47)

Which of the following is true, concerning NPV? 47)

______ A)

the project recovers the initial investment, discounted by the hurdle rate B)

when the NPV is positive, the cash flows from the project exceed the initial investment C)

the project recovers the initial investment exactly D)

the project recovers the initial investment and earns a profit E)

recovers the initial investment and earns a return greater than the RRR

48)

In NPV analysis, if the IRR exceeds the RRR, 48)

______ A)

the NPV is negative when project cash flows are discounted at the RRR. B)

the NPV is positive when project cash flows are discounted at the RRR. C)

the NPV will be negative (when discounted at the IRR). D)

the NPV is positive when project cash flows are discounted at the IRR. E)

the project should be rejected.

49)

Use the following information to determine which machine to purchase based on net present value.

Machine 1Machine 2Machine 3

Initial investment$225,000$235,000$210,000

Annual cash inflows$

50,000$

50,000

Useful lives5 years4 years8 years

Cost of capital is 10 percent. 49)

______ A)

purchase machine 2 B)

purchase any of the three machines C)

purchase all three machines D)

purchase machine 1 E)

purchase machine 3

50)

In situations where the required rate of return is not constant for each year of the project, it is advantageous to use 50)

______ A)

sensitivity analysis. B)

the internal rate of return method. C)

the adjusted rate of return method. D)

the net present value method. E)

none of the above

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July 1, 2023

61. Which of the following statements regarding intermolecular forces is incorrect?

A)Hydrogen bonding is the strongest of the intermolecular forces.

B)London dispersion forces increase with increasing molecular size.

C)Dipole-dipole forces are present in all atoms and molecules.

D)In order for a pure substance to participate in hydrogen bonding, it must have hydrogen bonded to F, O, or N.

E)Intermolecular forces are much weaker than bonding forces.

62. Which of the following statements regarding intermolecular forces is incorrect?

A)Hydrogen bonding is the strongest of the intermolecular forces for substances of similar molar mass.

B)London dispersion forces are present in all atoms and molecules.

C)Dipole-dipole forces increase with increasing molecular size.

D)Bonding forces are much stronger than intermolecular forces.

E)Hydrogen bonding is the reason for the abnormally high boiling point of water.

63. Which choice correctly lists the intermolecular forces present in CH3NH2?

A)London forces only

B)dipole-dipole forces only

C)London forces, dipole-dipole forces, and hydrogen bonding

D)dipole-dipole forces and hydrogen bonding

E)hydrogen bonding only

64. Which choice correctly lists the intermolecular forces present in CH4?

A)London forces only

B)London forces and dipole-dipole forces

C)London forces, dipole-dipole forces, and hydrogen bonding

D)dipole-dipole forces and hydrogen bonding

E)London forces and hydrogen bonding

65. Which choice correctly lists the intermolecular forces present in CH3Br?

A)London forces only

B)London forces and dipole-dipole forces

C)London forces, dipole-dipole forces, and hydrogen bonding

D)dipole-dipole forces and hydrogen bonding

E)London forces and hydrogen bonding

66. Arrange the following substances in order of increasing boiling point: CH3OH, CH4, CH3CH2OH, HOCH2CH2OH

A)CH3OH < CH4 < CH3CH2OH < HOCH2CH2OH B)CH4 < CH3OH < CH3CH2OH < HOCH2CH2OH C)CH4 < CH3OH < HOCH2CH2OH < CH3CH2OH D)CH3OH < CH4 < HOCH2CH2OH < CH3CH2OH E)HOCH2CH2OH < CH3CH2OH < CH3OH < CH4 67. Arrange the following substances in order of increasing boiling point: N2, H2, NH3, PH3 A)H2 < N2 < PH3 < NH3D)N2 < PH3 < NH3 < H2 B)N2 < H2 < PH3 < NH3E)NH3 < PH3 < N2 < H2 C)H2 < N2 < NH3 < PH3 68. Select the pair of substances which has the one with the higher equilibrium vapor pressure at a given temperature listed first. A)H2O, H2SD)NH3, PH3 B)CH3CH2OH, CH3OHE)Br2, Cl2 C)CH3COCH3, CH3CH2CH2OH 69. Select the pair of substances which has the one with the higher equilibrium vapor pressure at a given temperature listed first. A)H2O, HClD)AsH3, PH3 B)CH3OH, CH4E)Cl2, Br2 C)CH3CH2CH2OH, CH3COCH3 70. Which of the following statements regarding the liquid state is incorrect? A)Liquids are about 1000 times denser than gases. B)Liquids are normally about 90-95% as dense as their corresponding solid. C)The viscosity of a liquid is a measure of its resistance to flow. D)Molecules with high intermolecular forces will have high surface tension. E)Surface tension increases as temperature increases.