90 Present value measuresA. the value to us today of future cash flows.B. the rate of return on an investment when we take account of cash inflows and outflowsC. the current estimates of our project budgetD. the dollars worth of work accomplished as of to
题目
90 Present value measures
A. the value to us today of future cash flows.
B. the rate of return on an investment when we take account of cash inflows and outflows
C. the current estimates of our project budget
D. the dollars worth of work accomplished as of today
E. All of the above
相似考题
更多“90 Present value measuresA. the value to us today of future cash flows.B. the rate of return on an investment when we take account of cash inflows and outflowsC. the current estimates of our project budgetD. the dollars worth of work accomplished as of to”相关问题
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第1题：
Which of the following is not a measure of the profitability of a project or program?
A . Return on original investment.
B . Net present value.
C . Depreciation.
D . Discounted cash flow.
E . None of the above
正确答案：C
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第2题：
115 The technique most commonly used to determine the profitability of a project includes _____ methods.
A. Net present value (NPV).
B. Return on investment (ROI).
C. Discounted cash flow (DCF)
D. Payout time and risk sensitivity analysis.
E. All of the above
正确答案：E
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第3题：
136 A technique that can be used to measure the total income of a project compared to the total moneys expended at any period of time is:
A. return on investment (ROI)
B. net present value (NPV)
C. discounted cash flow (DCF)
D. B and C
E. All of the above
正确答案：E
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第4题：
8 Present value measures
A. the value to us today of future cash flows.
B. the rate of return on an investment when we take account of cash inflows and outflows
C. the current estimates of our project budget
D. the dollars worth of work accomplished as of today
E. All of the above
正确答案：A
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第5题：
(c) Discuss the reasons why the net present value investment appraisal method is preferred to other investment
appraisal methods such as payback, return on capital employed and internal rate of return. (9 marks)
正确答案：
(c) There are many reasons that could be discussed in support of the view that net present value (NPV) is superior to other
investment appraisal methods.
NPV considers cash flows
This is the reason why NPV is preferred to return on capital employed (ROCE), since ROCE compares average annual
accounting profit with initial or average capital invested. Financial management always prefers cash flows to accounting profit,
since profit is seen as being open to manipulation. Furthermore, only cash flows are capable of adding to the wealth of
shareholders in the form. of increased dividends. Both internal rate of return (IRR) and Payback also consider cash flows.
NPV considers the whole of an investment project
In this respect NPV is superior to Payback, which measures the time it takes for an investment project to repay the initial
capital invested. Payback therefore considers cash flows within the payback period and ignores cash flows outside of the
payback period. If Payback is used as an investment appraisal method, projects yielding high returns outside of the payback
period will be wrongly rejected. In practice, however, it is unlikely that Payback will be used alone as an investment appraisal
method.
NPV considers the time value of money
NPV and IRR are both discounted cash flow (DCF) models which consider the time value of money, whereas ROCE and
Payback do not. Although Discounted Payback can be used to appraise investment projects, this method still suffers from the
criticism that it ignores cash flows outside of the payback period. Considering the time value of money is essential, since
otherwise cash flows occurring at different times cannot be distinguished from each other in terms of value from the
perspective of the present time.
NPV is an absolute measure of return
NPV is seen as being superior to investment appraisal methods that offer a relative measure of return, such as IRR and ROCE,
and which therefore fail to reflect the amount of the initial investment or the absolute increase in corporate value. Defenders
of IRR and ROCE respond that these methods offer a measure of return that is understandable by managers and which can
be intuitively compared with economic variables such as interest rates and inflation rates.
NPV links directly to the objective of maximising shareholders’ wealth
The NPV of an investment project represents the change in total market value that will occur if the investment project is
accepted. The increase in wealth of each shareholder can therefore be measured by the increase in the value of their
shareholding as a percentage of the overall issued share capital of the company. Other investment appraisal methods do not
have this direct link with the primary financial management objective of the company.
NPV always offers the correct investment advice
With respect to mutually exclusive projects, NPV always indicates which project should be selected in order to achieve the
maximum increase on corporate value. This is not true of IRR, which offers incorrect advice at discount rates which are less
than the internal rate of return of the incremental cash flows. This problem can be overcome by using the incremental yield
approach.
NPV can accommodate changes in the discount rate
While NPV can easily accommodate changes in the discount rate, IRR simply ignores them, since the calculated internal rate
of return is independent of the cost of capital in all time periods.
NPV has a sensible re-investment assumption
NPV assumes that intermediate cash flows are re-invested at the company’s cost of capital, which is a reasonable assumption
as the company’s cost of capital represents the average opportunity cost of the company’s providers of finance, i.e. it
represents a rate of return which exists in the real world. By contrast, IRR assumes that intermediate cash flows are reinvested
at the internal rate of return, which is not an investment rate available in practice,
NPV can accommodate non-conventional cash flows
Non-conventional cash flows exist when negative cash flows arise during the life of the project. For each change in sign there
is potentially one additional internal rate of return. With non-conventional cash flows, therefore, IRR can suffer from the
technical problem of giving multiple internal rates of return. -
第6题：
—Do you mean that deposits and withdrawals are posted to my account immediately?—()A. Yes, we process cash transactions during the working day.
B. Yes, we process cash transactions on the second day.
C. Yes, we process cash transactions as soon as they take place.
参考答案：C
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第7题：
We shall be glad if you agree to ship the goods ()us as before() Cash Against Documents basis
A、to,on
B、for,upon
C、for
D、in,to,in
参考答案：A
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第8题：
Current assets can be converted easily into ().A. cash equivalents
B. checks
C. cash
参考答案：C
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第9题：
Bonds are sold at face value when the contract rate is equal to the market rate of interest.()
正确答案：对
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第10题：
PV Co is evaluating an investment proposal to manufacture Product W33, which has performed well in test marketing trials conducted recently by the company’s research and development division. The following information relating to this investment proposal has now been prepared.
Initial investment $2 million
Selling price (current price terms) $20 per unit
Expected selling price inflation 3% per year
Variable operating costs (current price terms) $8 per unit
Fixed operating costs (current price terms) $170,000 per year
Expected operating cost inflation 4% per year
The research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.
It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.
Required:
(a) Identify and explain the key stages in the capital investment decision-making process, and the role of
investment appraisal in this process. (7 marks)
(b) Calculate the following values for the investment proposal:
(i) net present value;
(ii) internal rate of return;
(iii) return on capital employed (accounting rate of return) based on average investment; and
(iv) discounted payback period. (13 marks)
(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)
正确答案：
(a)Thekeystagesinthecapitalinvestmentdecision-makingprocessareidentifyinginvestmentopportunities,screeninginvestmentproposals,analysingandevaluatinginvestmentproposals,approvinginvestmentproposals,andimplementing,monitoringandreviewinginvestments.IdentifyinginvestmentopportunitiesInvestmentopportunitiesorproposalscouldarisefromanalysisofstrategicchoices,analysisofthebusinessenvironment,researchanddevelopment,orlegalrequirements.Thekeyrequirementisthatinvestmentproposalsshouldsupporttheachievementoforganisationalobjectives.ScreeninginvestmentproposalsIntherealworld,capitalmarketsareimperfect,soitisusualforcompaniestoberestrictedintheamountoffinanceavailableforcapitalinvestment.Companiesthereforeneedtochoosebetweencompetinginvestmentproposalsandselectthosewiththebeststrategicfitandthemostappropriateuseofeconomicresources.AnalysingandevaluatinginvestmentproposalsCandidateinvestmentproposalsneedtobeanalysedindepthandevaluatedtodeterminewhichofferthemostattractiveopportunitiestoachieveorganisationalobjectives,forexampletoincreaseshareholderwealth.Thisisthestagewhereinvestmentappraisalplaysakeyrole,indicatingforexamplewhichinvestmentproposalshavethehighestnetpresentvalue.ApprovinginvestmentproposalsThemostsuitableinvestmentproposalsarepassedtotherelevantlevelofauthorityforconsiderationandapproval.Verylargeproposalsmayrequireapprovalbytheboardofdirectors,whilesmallerproposalsmaybeapprovedatdivisionallevel,andsoon.Onceapprovalhasbeengiven,implementationcanbegin.Implementing,monitoringandreviewinginvestmentsThetimerequiredtoimplementtheinvestmentproposalorprojectwilldependonitssizeandcomplexity,andislikelytobeseveralmonths.Followingimplementation,theinvestmentprojectmustbemonitoredtoensurethattheexpectedresultsarebeingachievedandtheperformanceisasexpected.Thewholeoftheinvestmentdecision-makingprocessshouldalsobereviewedinordertofacilitateorganisationallearningandtoimprovefutureinvestmentdecisions. -
第11题：
It will take at least two weeks for the board members to review __________work on the budget proposals.A. ours
B. we
C. our
D. us答案：C解析：通过选项可以知道，此题为选择恰当的人称代词的问题。空格处为修饰作为review宾语的work的限定词的位置．选项中可以用做限定词的只有所有格。 -
第12题：
名词解释题净现值率（NPVR，Net Present Value Rate）正确答案： 指单位投资的净现值。解析： 暂无解析 -
第13题：
The technique most commonly used to determine the profitability of a project includes _____ methods.
A . Net present value (NPV).
B . Return on investment (ROI).
C . Discounted cash flow (DCF)
D . Payout time and risk sensitivity analysis.
E . All of the above.
正确答案：E
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第14题：
137 Which of the following is not a measure of the profitability of a project or program?
A. Return on original investment.
B. Net present value.
C. Depreciation.
D. Discounted cash flow.
E. None of the above
正确答案：C
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第15题：
50 The salvage value of an asset is:
A. The value of the scrap metal if a new asset were taken to a scrap yard.
B. The value that an asset has on the books after one year of depreciation.
C. The costs that have been sunk into the project to date.
D. The expected cash value at the end of an assets useful life.
E. A and D only.
正确答案：D
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第16题：
61 Cost and schedule data are usually integrated because:
A. optimized project cash flow can affect financial requirements
B. they provide MIS with an integrated system to produce reports
C. they control escalation allowances
D. they account for omissions in the definitive estimate
E. they predict future performance
正确答案：E
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第17题：
The IOA Division is also considering whether to undertake an investment in the West of the country (the West Project).
An initial cash outlay investment of ￡12 million will be required and a net cash inflow amounting to ￡5 million is
expected to arise in each of the four years of the life of the project.
The activities involved in the West project will cause the local river to become polluted and discoloured due to the
discharge of waste substances from mining operations.
It is estimated that at the end of year four a cash outlay of ￡2 million would be required to restore the river to its
original colour. This would also clear 90% of the pollution caused as a result of the mining activities of the IOA
Division.
The remaining 10% of the pollution caused as a result of the mining activities of the IOA Division could be cleared
up by a further cash outlay of ￡2 million.
(c) Evaluate the West project and, stating your reasons, comment on whether the board of directors of NCL plc
should spend the further ￡2 million in order to eliminate the remaining 10% of pollution. (6 marks)
(Ignore Taxation).
正确答案：(c) The net present value of the West project is dependent upon the level of environmental expenditure that will be incurred by
Division IOA at the conclusion of the project. The potential NPV of the West project can be calculated using a discount rate
of 12% per annum which assumes that the West project has similar characteristics to the North, East and South projects.
Net cash inflows for each of years 1–4 = ￡5 million
Cumulative discount factor at 12% per annum = 3·037
Therefore the present value of cashflows is ￡5 million x 3·037 = ￡15,185 million and the net cash flow after the initial
outlay of ￡12 million is ￡3,185,000.
There is now the strategic consideration regarding whether to spend ￡2 million which will restore the river to its original colour
and also clear 90% of the pollution caused as a result of the mining activities of the IOA Division, or to incur expenditure of
a further ￡2 million which will completely redress any damage done to the environment by the activities of the IOA Division.
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第18题：
听力原文：W: What's the value of US dollars now?
M: It's inflated and is losing value against Euro and RMB, while RMB is depreciated against Euro.
Q: What does the man think of the US dollars?
(14)
A．The Euro's value remains unchanged.
B．The value of US dollars has changed a lot.
C．The American currency is losing value.
D．The RMB is increasing in value.
正确答案：C
解析：对话中男士认为美元相对欧元和人民币在贬值，尽管人民币相对欧元贬值。 -
第19题：
When() a documentary bill, our bank buys the bill and the documents for the face value less discount.
A、we negotiating
B、negotiated
C、negotiating
D、we are negotiating
参考答案：C
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第20题：
Sinking Fund Cash would be classified on the balance sheet as ( )
A. a current asset
B. a fixed asset
C. an intangible asset
D. an investment
正确答案：D
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第21题：
The sentence "But we pay for our sensitivity." in the third paragraph implies that______.
A) we should pay a debt for, our feeling
B) we have to be hurt when We feel something
C) our pain is worth feeling
D) when we feel pain, we are suffering it
正确答案：D
答案：D
[试题分析]综合理解题。
[详细解答]根据上下文，因为下一句指出We can feel pain when the slightest thing is wrong with any part of our body．显然，这里pay for不是“付钱”的意思，而是指“为…付出”。因此，D为最佳答案。
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第22题：
Which of the folloeing represents the estimated value of the work actually accomplished?( 75 )
A.AC
B.CV
C.PV
D.EV
正确答案：D
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第23题：
问答题This book is about the future of technology. In it we will examine some of the many recent developments in a few key fields and try, in a limited way, to predict where they will take us in the next fifteen years or (1)____. If that sounds like a modest goal, it’s not. Technology is the (2)____(dominate) force of our time and probably of all time to come. It appears in more varieties than we can count. It changes so rapidly (3)____ no scientist or engineer can keep up with his own field, much less with technology in general. It permeates and shapes our lives at every turn. We live in technology (4)____ fish live in the sea, and we have only a little better chance of (5) f____ the details of its future changes. Yet the task is well worth undertaking. Whatever hints we can glean (一点点搜集) about the future win help us prepare for the changes to come. Modest forecasts, evidence of trends, a few concrete developments to be expected all are better than no warning at all. And (6) th____ technology has made the present much less stable than the past, and surely will make the future more disturbed still, there is good reason to hope that our lives, in sum and on average, will be better as a result. In an age of uncomfortable (7) ch____, this is reassurance(保证) we all can use. For an idea of what is to come—in magnitude if not in (8) sp____—look to the past. In the last ninety years, the world has shrunk, while human experience has advanced almost beyond the recognition of these who grew up in our grandparent’s generation.A century after America’s (9)____(found) conceived their agrarian (耕地的) democracy, nearly all their descendents still lived on fanning. Since World War I, technology has extracted us from behind horse-drawn plows and plugged us into (10) as____ lines and offices. Today it is removing many of us from offices and letting us work at home or forcing us to work on the road.正确答案：
1.so 本句译文:在这本书里,我们将检查几个关键领域的一些最新进展,并且在某种程度上预测它们在未来的15年左右将把我们带向何处。or so大约,左右。
2.dominant dominant支配的;占优势的。本句译文:技术是我们这个时代、或许包括未来所有时间的支配力量。
3.that 考查so+adj. /adv. +that句型。。本句译文:它变化得如此之快,以至于没有科学家或工程师能紧跟上他自己的研究领域。更不用说总体的科技。
4.as as做连词,“像……一样”。本句译文:我们生活在科技中,就像鱼生活在水里,我们只不过在预测技术未来的细节变化上有更大一点的可能性。
5.forecasting forecast与后面的“its future changes”语义上搭配。
6.though 弄清此长句的主句是“there is good reason…”。前半句表示“现在更不稳定”,后半句表示“生活因此更好”,所以两句之间应为转折关系,填though。
7.challenges challenges挑战。本句译文:在这个充满不安挑战的年代,这是我们都能依靠的保证。
8.specifics specifics详情,细节(particular details)。本句译文:要解答将来会出现什么——重大的还是点滴的——的问题,请回顾过去。
9.founders founders(创建者)与后面的descendents(后代)搭配。本句译文:在美利坚创建者构思耕地民主化后的一个世纪里,几乎他们所有的后代子孙仍以耕地维持生计。
10.assembly assembly line装配线。解析： 暂无解析