A project costs $75,000, will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $6,000 up-front. The project generates an annual operating cash flow (OCF) of $30,000. The fixed assets will be sold for $7,000 at the end of the project. If the firm has a tax rate of 35% and a required return of 8%, what is the project’s NPV?

The financial manager can rely on both the IRR and the NPV for project selections when: 

Suppose that you have just purchased a share of stock for $75. The most recent dividend was $5 and dividends are expected to grow at a rate of 2% indefinitely. What must your required return be on the stock?

A situation in which taking one investment prevents the taking of another is called:

Supreme Marketing Enterprise’s stock is listed on the NASDAQ. The firm’s existing shares are traded in the which one of the following markets?    

If a firm issues debt, the following is TRUE:

In a financial market someone who maintains an inventory and stands ready to buy and sell equity securities is called a(n):

Which bond would most likely possess the highest degree of interest rate risk?

What is the profitability index of the following investment if the required return = 6%?             Year       0         1          2          3                    CF       -150     +$50    +$70    +$70

A project costs $80,000 and will be depreciated straight-line to zero over its 4 year life. The project generates annual OCF of $22,000 and the fixed assets will be sold for $9,000 at the termination of the project. If the firm has a tax rate of 35% and a required return of 5%, what is the NPV?