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1.How much can be accumulated for retirement if $2,000 is deposited annually, beginning one year from today, and the account earns 9% interest compounded annually for 40 years?
A) $ 87,200.00
B) $675,764.89
C) $736,583.73
D) $802,876.27

2.When an investor purchases a $1,000 par value U.S. Treasury bond that was quoted at 97.16, the investor:
A) receives 97.5% of the stated coupon payments.
B) receives $975 upon the maturity date of the bond.
C) pays 97.5% of face value for the bond.
D) pays $1,025 for the bond.

3.If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price?
A) $4.50
B) $18.00
C) $22.22
D) $40.50

4.The decision rule for net present value is to:
A) accept all projects with cash inflows exceeding initial cost.
B) reject all projects with rates of return exceeding the opportunity cost of capital.
C) accept all projects with positive net present values.
D) reject all projects lasting longer than 10 years.

5.When is it appropriate to include sunk costs in the evaluation of a project?
A) Include sunk costs when they are relatively large.
B) Include sunk costs if it improves the project's NPV.
C) Include sunk costs if they are considered to be overhead costs.
D) It is never appropriate to include sunk costs.

6.How much could NPV be affected by a worst-case scenario of 25% reduction from the $3 million in expected annual cash flows on a five-year project with 10% cost of capital?
A) $2,843,090
B) $3,750,000
C) $4,578,825
D) $6,155,274

7.If a share of stock provided a 14.0% nominal rate of return over the previous year while the real rate of return was 6.0%, then the inflation rate was:
A) 1.89%
B) 7.55%
C) 8.00%
D) 9.12%

8.If a stock consistently goes down (up) by 1.6% when the market portfolio goes down (up) by 1.2% then its beta:
A) equals 1.40.
B) equals 1.24.
C) equals 1.33.
D) equals 1.40.

9. How much will a firm need in cash flow before tax and interest to satisfy debt holders and equity holders if the tax rate is 40%, there is $10 million in common stock requiring a 12% return, and $6 million in bonds requiring an 8% return?
A) $1,392,000
B) $1,488,000
C) $2,480,000
D) $2,800,000

10.ABC Corp. stock is selling for $30 per share when a 10% stock dividend is declared. If you own 100 shares of ABC Corp. then you will receive:
A) $3.
B) $3 times 100 shares = $300.
C) $300 plus 10 shares of ABC Corp.
D) 10 shares of ABC Corp.

11.The main purpose in contracting to purchase foreign currency in the forward market is to:
A) earn a premium (interest) on the exchange.
B) lock into a price now.
C) take advantage of future price reductions.
D) avoid the more expensive spot rates.

12.The spot price of silver closes at $7 per ounce at the expiration of an option contract. Which one of the following option positions will have value?
A) The buyer of a call with $5 strike price.
B) The seller of a call with $5 strike price.
C) The buyer of a put with $5 strike price.
D) The seller of a put with $5 strike price.

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https://brainmass.com/business/net-present-value/multiple-choice-questions-46598

Solution Preview

1.How much can be accumulated for retirement if $2,000 is deposited annually, beginning one year from today, and the account earns 9% interest compounded annually for 40 years?
A) $ 87,200.00
B) $675,764.89
C) $736,583.73
D) $802,876.27

Answer: B) $675,764.89

n= 40
r= 9.00%

FVIFA (40 periods, 9.% rate ) = 337.882445
FVIFA= Future Value Interest Factor for an Annuity
FVIFA( n, r%)= =[(1+r%)^n -1]/r%
Annual Payment= 2,000
Future Value= $675,764.89 =337.882445 x 2000

2.When an investor purchases a $1,000 par value U.S. Treasury bond that was quoted at 97.16, the investor:
A) receives 97.5% of the stated coupon payments.
B) receives $975 upon the maturity date of the bond.
C) pays 97.5% of face value for the bond.
D) pays $1,025 for the bond.

Answer: C) pays 97.5% of face value for the bond.

Treasury bonds are quoted in dollars and 32nds of a dollar . The quoted price is for a face value of $100.
Thus a quote of 97-16 means 97+ 16/32 = 97.5 for a face value of $100
Thus the price paid is 97.5/100 = 97.5% of face value for the bond.

3.If a stock's P/E ratio is 13.5 at a time when earnings are $3 per year, what is the stock's current price?
A) $4.50
B) $18.00
C) $22.22
D) $40.50

Answer: D) $40.50

Price= P/E x EPS
P/E= 13.5
EPS= $3.00

Price= P/E x EPS= $40.50 =13.5 x 3

4.The decision rule for net present value is to:
A) accept all projects with cash inflows exceeding initial cost.
B) reject all ...

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Answers 12 multiple choice questions with explanations.

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Amino acids multiple choice questions

Which statement is incorrect about the classification of amino acids?
a. Alanine and valine are neutral, nonpolar amino acids.
b. Lysine and arginine are basic amino acids.
c. Tryptophan and phenylalanine are aromatic amino acids.
d. Aspartic acid and aspargine are acidic amino acids.

Which of the following amino acids is the least water soluble at pH 7.0?
a. Tryptophan
b. Glutamic acid
c. Cysteine
d. Histidine

Which amino acid would migrate the furthest toward the anode (positive electrode) during paper electrophoresis at pH 7.0?
a. Aspartic acid
b. Alanine
c. Lysin
d. Glutamine

Which of the following functional groups, attached to an inert matrix, could function as a cation exchanger?
a. Diethylaminoethyl-
b. p-aminobenzyl-
c. Carboxymethyl-
d. Trimethylammonium-

Which of the following amino acids would make the best buffer at pH 4.5?
a. Histidine
b. Alanine
c. Glutamine
d. Aspartic acid

Which fact is incorrect about stereoisomers?
a. A diastereomer is a nonsuperimposable non-mirror image.
b. An enantiomer is a nonsuperimposible mirror image.
c. Diastereomers have different melting points.
d. Diastereomers rotate plane polarized light in equal but opposite direction.

Which statement is incorrect about L-isoleucine?
a. Its enantiomer is named O-isoleucine.
b. It contains a total of two asymmetric or chiral carbons.
c. It can also be named as (28, 38)-isoleucine using the (R,8) system.
d. Its diastereomer would be named O-alloisoleucine.

An isoelectric amino acid was dissolved in water and the resulting pH was approximately 7.6. What amino acid would possess this property?
a. Alanine
b. Glutamic acid
c. Histidine
d. Lysine

What volume of NaOH is required to adjust the solution of monosodium aspartate to pH 9.8?
a. 1 ml
b. 2 ml
c. 3 ml
d. 6 ml or more

What volume of 2 N Hel is required to completely titrate the 4 mmol of monosodium aspartate?
a. 2 ml
b. 3ml
c. Aml
d. 6 ml or more

Which statement is correct about the peptide ala-ser?
a. Alanine is at the N-terminal of the peptide.
b. There are a total six atoms that lie in the plane of the peptide bond linking alanine to serine.
c. The alpha-carbon of alanine is sp3 hybridized d All the above are correct statements.

What is the product formed from the acid hydrolysis of a simple amide?
a. Acid & base
b. Aldehyde & alcohol
c. Acid & amine
d. Ester & alcohol

The complete acid hydrolysis of the peptide ala-gln-trp-ser would yield:
a. Ala, gin, trp, ser
b. Ala, glu, ser
c. Ala, glu, trp, ser
d. Ala. ser

Fibrous proteins, such as collagen, have which of the following properties?
a. Highly soluble in water
b. Their hydrophilic residues are directed into the interior of the protein
c. Exhibit enzymatic activity
d. Serve structural roles in the cell

Quaternary structure is associated with:
a. The overall shape of a polypeptide chain
b. The sum of the secondary and tertiary interactions
c. Simple proteins with only one subunit
d. The relative orientation of one polypeptide to another polypeptide in a multi-subunit protein.

The information needed to define the structure of a protein is essentially contained in:
a. Amino acid composition
b. Amino acid sequence
c. Secondary structure
d. Tertiary structure.

Insulin is a polypeptide hormone that contains two short polypeptide chains linked by two interstrand disulfide bonds. The most logical order of events to perform in order to sequence this protein would be:
A: The peptides are reduced with mercaptoethanol.
B: The peptides are sequenced using Edman chemistry .
C: The peptides are separated by chromatography techniques. 0: The peptides are alkylated with iodoacetamide.
a. A, D,C, B b.C,A, 0, B
c. C, B, A, 0
d. A, B, C, 0

Which statement is incorrect about the peptide val-asp-trp-asn-ser?
a. This peptide would show a strong absorption band at 280 nm.
b. Reaction with chymotrypsin would yield two peptides.
c. To synthesize this peptide using the solid phase method of Merrifield, the amino acid directly attached to the resin would be serine.
d. After the second round of Edman chemistry using the reagent PITC, the PTH -amino acid residue released would be PTH-asn.

Which statement is incorrect about the reaction of the peptide ser-Iys-asp-trp-cys-metasn-phe-ala with the following reagents?
a. Reaction with cyanogens bromide would yield two peptides.
b. Reaction with trypsin would result in three peptides. The smallest of three peptides would have the highest pi of the three.
c. Reaciton with chymotrypsin would result in the peptides ser-Iys-asp & try-cys-met-Iysasn-phe-ala .
d. Reaction with chymotrypsin would yield a different set of peptides that overlap those obtained with tryspsin

Determine the amino acid sequence of the following oligopeptide from the experimental data below:
The amino acid composition is found the be ala, Iys, phe, met, cys plus some
decompsition products.
2. The peptide has a molecular weight around 700 Da and absorbs at 280 nm.
3. Treatment with carboxypeptidase results in tryptophan and a peptide.
4. CNBr treatment yields a tetrapeptide and a dipeptide.
5. Trypsine digestion produces an amino acid and a pentapeptide with met on the amino end.
6. Chymotrypsin digestion yields a dipeptide and a tetrapeptide.
a. trp-Iys-met-cys-met-ala
b. Iys-met-cys-phe-ala-trp
c. trp-ala-phe-cys-met-Iys
d. Iys-ala-cys-phe-met -trp

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