公司理财精要第九章题库.doc

Chapter 09 Making Capital Investment Decisions ? Multiple Choice Questions? 1.?Any changes to a firms projected future cash flows that are caused by adding a new project are referred to as which one of the following??A.?Eroded cash flowsB.?Deviated projectionsC.?Incremental cash flowsD.?Directly impacted flowsE.?Assumed flows ? 2.?Which one of the following principles refers to the assumption that a project will be evaluated based on its incremental cash flows??A.?Forecast assumption principleB.?Base assumption principleC.?Fallacy principleD.?Erosion principleE.?Stand-alone principle ? 3.?A cost that should be ignored when evaluating a project because that cost has already been incurred and cannot be recouped is referred to as which type of cost??A.?FixedB.?ForgottenC.?VariableD.?OpportunityE.?Sunk ? 4.?Which one of the following terms refers to the best option that was foregone when a particular investment is selected??A.?Side effectB.?ErosionC.?Sunk costD.?Opportunity costE.?Marginal cost ? 5.?Which one of the following terms is most commonly used to describe the cash flows of a new project that are simply an offset of reduced cash flows for a current project??A.?Opportunity costB.?Sunk costC.?ErosionD.?Replicated flowsE.?Pirated flows ? 6.?A pro forma financial statement is a financial statement that:?A.?expresses all values as a percentage of either total assets or total sales.B.?compares actual results to the budgeted amounts.C.?compares the performance of a firm to its industry.D.?projects future years operations.E.?values all assets based on their current market values. ? 7.?The amount by which a firms tax bill is reduced as a result of the depreciation expense is referred to as the depreciation:?A.?tax shield.B.?credit.C.?erosion.D.?opportunity cost.E.?adjustment. ? 8.?Which one of the following refers to a method of increasing the rate at which an asset is depreciated??A.?Non-cash expenseB.?Straight-line depreciation