**List ofFIN370 Final Exam Questions. Online Business Degree. **Finance for Business.

**Final Exam Study Guide in FIN370 Finance**** for Business in the Online Business Degree Program . **

- Which of the following statements about the percent-of-sales method of financial forecasting is true?
- Which of the following is considered to be a spontaneous source of financing?
- A toy manufacturer following the hedging principle will generally finance seasonal inventory build-up prior to the Christmas season with
- For the NPV criteria, a project is acceptable if the NPV is __________, while for the profitability index, a project is acceptable if the profitability index is
- The firm should accept independent projects if:
- The NPV assumes cash flows are reinvested at the
- ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NPV of the assembler if the required rate of return is 12%.
- You have been asked to analyze a capital investment proposal. The project’s cost is $2,775,000. Cash inflows are projected to be $925,000 in Year 1
- Many firms today continue to use the payback method but employ the NPV or IRR methods as secondary decision methods of control for risk
- Which of the following statements about the MIRR is false?
- We compute the profitability index of a capital-budgeting proposal by
- Compute the payback period for a project with the following cash flows, if the company’s discount rate is 12%. Initial outlay = $450 Cash flows: Year 1 = $325 Year 2 = $ 65 Year 3 = $100