Net Present Value and Question

SEAT NUMBER: ……….… ROOM: .………………. FAMILY NAME.………….....…………………………. This question paper must be returned. Candidates are not permitted to remove any part of it from the examination room. OTHER NAMES…………….…………………..…….. STUDENT NUMBER………….………..……………..

SESSION 2 EXAMINATIONS NOVEMBER 2012
Unit Code and Name: AFIN252, Applied Financial Analysis and Management Time Allowed: 3 hours plus 10 minutes reading time. Total Number of Questions: 50 Multiple Choice Questions plus 8 full response questions. Instructions: 1. PART A (30 marks): There are 50 multiple choice questions. Answers to these must be recorded on a red-coloured General Purpose Answer Sheet which will be marked by a computer. Please make sure your name is on this sheet.

2. PART B (60 marks): There are 8 questions. Attempt all questions. Show all working. Write answers in the spaces provided.

Materials Allowed:
    No dictionaries are permitted. A non-programmable calculator (no text retrieval capacity) is permitted. Financial calculators may be used. This is a closed book examination. No books, notes or formulae sheets are allowed.

Part B Question Out of Mark

1 6

2 6

3 7

4 11

5 9

6 6

7 6

8 9

Total 60

1(41)

PARTF1.20 A (30 Marks)
There are fifty (50) multiple choice questions, worth 0.6 marks each. Select the most correct answer for each question. Record your answers on the red-coloured computer sheet. Question 1 Which of the following statements is FALSE? A) In general, the difference between the cost of capital and the internal rate of return (IRR) is the maximum amount of estimation error in the cost of capital estimate that can exist without altering the original decision. B) The internal rate of return (IRR) can provide information on how sensitive your analysis is to errors in the estimate of your cost of capital. C) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this