If the WACC increases:
Select one:
O a. NPV increases
O b. NPV is without change
C.NPV decreases
What is the accounting equation?
Select one:
O a. Liabilities - stockholders' equity = assets
O b. Assets - liabilities = stockholders' equity
O c. Assets + liabilities = stockholders' equity
Given the following information, calculate the operating cash flows. Net income 15, Depreciation 80,
Increase in receivables 78, Increase in inventory 26, Increase in claims 30
Select one:
O a.9
O b.13
O C. 21
If the NCF increases:
O a. NPV decreases
O b. NPV increases
O c.NPV is without change
A business has the following items in it: Land $1,000 Machinery $20 Cash $10 Loan $500 What is the
value of the owner's equity?
Select one:
O a.$1.000
O b. $530
O C.$500
Company purchased an equipment for $600. The equipment has a useful life of 4 years and a scrap value
(residual value) of $50 at the end of year 4. What is the depreciation expense for year 1 (using straight
line method?
Select one:
O a.137.5
O b. 122.5
O C.150
