1. A minimum acceptable rate of return for an investment decision is called the:
a) internal rate of return
b)average rate of return
c)hurdle rate
d)maximum rate
e)payback rate
2. yoho company reported the following number for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000;cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Compute the division on assets :
a) 18.6%
b)21.3%
c)17.3%
d)10.4%
e) 14.7%
3. An estimate of an assets value to the company, calculated by discounting the future cash flows from the investment at an appropriate rate and then subtracting the initial cost of the investment, is known as:
a) annual net cash flows
b) rate of return on investment
c)net present value
d)payback period
e)unamortized carrying value