Boston Chicken is considering two mutually exclusive projects with the following cash flows

Boston Chicken is considering two mutually exclusive projects with the following cash flows. What is the crossover rate? If the required rate of return is lower than the crossover rate, which project should be accepted?        A.  14.72 percent; A B.  14.72 percent; B C.  15.99 percent; A D.  15.99 percent; B E.  16.08 percent; B   The crossover rate is the IRR of the cash flow differences.

89.	You are analyzing a project and have gathered the following data:     Based on the profitability index of _____ for this project, you should _____ the project.    A.  0.93; accept B.  1.02; accept C.  1.10; accept D.  0.93; reject E.  1.10; reject

90.	You are analyzing a project and have gathered the following data:     Based on the internal rate of return of _____ percent for this project, you should _____ the project.    A.  14.67; accept B.  17.91; accept C.  14.67; reject D.  17.91; reject E.  18.46; reject

91.	You are analyzing a project and have gathered the following data:     Based on the net present value of _____, you should _____ the project.    A.  -$2,030.75; reject B.  -$1,995.84; reject C.  -$283.60; accept D.  $3,283.60; accept E.  $4,109.37; accept

If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous

If a firm accepts Project A it will not be feasible to also accept Project B because both projects would require the simultaneous and exclusive use of the same piece of machinery. These projects are considered to be:    A.  independent. B.  interdependent. C.  mutually exclusive. D.  economically scaled. E.  operationally distinct. Refer to section 9.5

10.	The present value of an investment's future cash flows divided by the initial cost of the investment is called the:    A.  net present value. B.  internal rate of return. C.  average accounting return. D.  profitability index. E.  profile period. Refer to section 9.6

11.

A project has a net present value of zero. Which one of the following best describes this project?    A.  The project has a zero percent rate of return. B.  The project requires no initial cash investment. C.  The project has no cash flows. D.  The summation of all of the project's cash flows is zero. E.  The project's cash inflows equal its cash outflows in current dollar terms. Refer to section 9.1

12.

Which one of the following will decrease the net present value of a project?    A.  increasing the value of each of the project's discounted cash inflows B.  moving each of the cash inflows forward to a sooner time period C.  decreasing the required discount rate D.  increasing the project's initial cost at time zero E.  increasing the amount of the final cash inflow Refer to section 9.1

You would like to know the minimum level of sales that is needed for a project to be accepted based on its net present value

When the operating cash flow of a project is equal to zero, the project is operating at the:    A.  maximum possible level of production. B.  minimum possible level of production. C.  financial break-even point. D.  accounting break-even point. E.  cash break-even point. Refer to section 11.4

48.	Which one of the following represents the level of output where a project produces a rate of return just equal to its requirement?    A.  capital break-even B.  cash break-even C.  accounting break-even D.  financial break-even E.  internal break-even Refer to section 11.4

49.

Which of the following statements are identified with financial break-even point? I. The present value of the cash inflows exactly offsets the initial cash outflow. II. The payback period is equal to the life of the project. III. The NPV is zero. IV. The discounted payback period equals the life of the project.    A.  I and II only B.  I and III only C.  II and IV only D.  I, II, and III only E.  I, III, and IV only Refer to section 11.4

50.

You would like to know the minimum level of sales that is needed for a project to be accepted based on its net present value. To determine that sales level you should compute the:    A.  contribution margin per unit and set that margin equal to the fixed costs per unit. B.  contribution margin per unit. C.  accounting break-even point. D.  cash break-even point. E.  financial break-even point. Refer to section 11.4

51.

Theresa is analyzing a project that currently has a projected NPV of zero. Which of the following changes that she is considering will help that project produce a positive NPV instead? Consider each change independently. I. increase the quantity sold II. decrease the fixed leasing cost for equipment III. decrease the labor hours needed to produce one unit IV. increase the sales price    A.  I and II only B.  I and IV only C.  II, III, and IV only D.  I, II, and IV only E.  I, II, III, and IV Refer to section 11.4