The valuations in an earned value management analysis must be either profits or revenue.
Answer the following statement true (T) or false (F)
False
The valuations could be based on either a value measure (revenue or profit) or a cost measure.
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Suppose that Walmart owes 100 million yen to a Japanese radio manufacturer in three-months' time. To cover itself against the risk of the dollar appreciating against the yen during this period, Walmart could buy 100 million yen in the forward market at today’s forward rate for delivery in three months.
a. True b. False
Negative amortization results when
A) the monthly interest payment on the home mortgage declines. B) the remaining loan balance declines. C) the monthly mortgage payment is less than the monthly interest on the remaining loan balance. D) the monthly mortgage payment is just equal to the monthly interest on the remaining loan balance.
Which of the following statements about beta is correct??
A. ?Firms with greater systematic risk volatilities than the market have betas that are less than 1.0, and firms with smaller systematic risk volatilities than the market have betas that are greater than 1.0. B. ?Firms with greater systematic risk volatilities than the market have betas that are greater than 1.0, and firms with smaller systematic risk volatilities than the market have betas that are less than 1.0. C. ?Firms with greater systematic risk volatilities than the market have betas that are less than zero, and firms with smaller systematic risk volatilities than the market have betas that are greater than zero. D. ?Firms with greater unsystematic risk volatilities than the market have betas that are less than 1.0, and firms with smaller unsystematic risk volatilities than the market have betas that are greater than 1.0. E. ?Firms with greater unsystematic risk volatilities than the market have betas that are greater than 1.0, and firms with smaller unsystematic risk volatilities than the market have betas that are less than 1.0.
A new project is expected to generate $800,000 in revenues, $250,000 in cash operating expenses,
and depreciation expense of $150,000 in each year of its 10-year life. The corporation's tax rate is 35%. The project will require an increase in net working capital of $85,000 in year one and a decrease in net working capital of $75,000 in year ten. What is the free cash flow from the project in year one? A) $380,000 B) $298,000 C) $375,000 D) $410,000