What is the companys return on investment

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Reference no: EM131061428

Question 1:
Which of the following criteria represents the dollar amount of change in the value of the firm as a result of choosing a decision?
a. return on investment
b. payback period
c. internal rate of return
d. net present value

Question 2:
Which of the following criteria represents the discount rate that makes the total present value of all cash flows sum to zero?
a. net present value
b. internal rate of return
c. payback period
d. return on investment

Question 3:

Milton Inc. generates annual revenue of $375,000,000 and incurs annual costs of $95,000,000. The initial investment amounts to $450,000,000. What is the company's return on investment?
a. 62%
b. 55%
c. 76%
d. 43%

Question 4:

Which of the following best defines a scoring model?
a. It is a quantitative assessment of the discount rate that makes the total present value of all cash flows sum to zero.
b. It is a quantitative assessment of the number of time periods before the cash inflows of a proposed project equal the amount of the initial investment.
c. It is a quantitative assessment of the rate of return required by management to accept a project.
d. It is a quantitative assessment of a decision alternative's value based on a set of attributes.

Question 5:

Please go to the link and answer the question below

https://bb.csueastbay.edu/bbcswebdav/pid-1550298-dt-content-rid-3205079_1/xid-3205079_1

An investor faces the decision of choosing a mortgage instrument. The following payoff matrix lists the yearly payment (including interest) the investor needs to pay. Use the below payoff table with four mortgage options to answer the following question(s).

What is the average payoff for the 1-year ARM?
a. $57,101
b. $51,721
c. $54,709
d. $43,355

Question 6:

Which of the following decisions has the best average payoff?
a. 1-year ARM
b. 3-year ARM
c. 5-year ARM
d. 30-year fixed

Question 7:
What is the best payoff rate for the 3-year ARM?
a. $44,897
b. $53,405
c. 30-year fixed
d. $64,547

Question 8:
Which of the following strategies is also called a minimax regret strategy?
a. average payoff strategy
b. conservative strategy
c. opportunity loss strategy
d. aggressive strategy

Question 9:
What is the opportunity loss when the investor chooses 3-year ARM but later on he finds the interest rates rise?
a. $9,649
b. $15,554
c. $11,127
d. $0

Question 10:
Please go to link and answer the question
https://bb.csueastbay.edu/bbcswebdav/pid-1550298-dt-content-rid-3205078_1/xid-3205078_1
The following two questions are based on this decision tree.
What is the expected value of the ticket when a discount is offered on the fare?
a. $600
b. $450
c. $420
d. $480

Question 11:
If the probability of selling the full-fare ticket is 0.85, what is the expected value of the ticket?
a. $480
b. $510
c. $420
d. $450

Reference no: EM131061428

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