A project has a conventional cash flow pattern and positive NPV. If the cash flows for the project, initial outlay, and future after-tax cash flows all double, then

• A.The IRR would increase and NPV would increase.
• B.The IRR would stay the same and NPV would increase.
• C.The IRR would stay the same and NPV would stay the same.

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If the one month exchange rate $:E(EUR) is 0.7928-30, this implies:

• A.the bank is willing to commit itself today to sell dollars in one month for E(EUR)0.7928 or to buy them for
  E(EUR) 0.7930.
• B.the bank is willing to commit itself today to buy dollars in one month for E(EUR)0.7928 or to sell them for
  E(EUR) 0.7930.
• C.the bank is willing to commit itself today to buy dollars for E(EUR)0.7928 or to sell them for E(EUR)0.7930.

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The book value of property, plant, and equipment is the ________.

• A.difference between market value and any accumulated depreciation to date.
• B.difference between original cost and any accumulated depreciation to date.
• C.amount of deferred taxes due to the timing difference in depreciation expense for tax purposes and financial reporting.

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A long-term asset is different from prepaid expense primarily because:

• A.A long-term asset has physical substance.
• B.A long-term asset is long-term in nature.
• C.A long-term asset is used in operations and not for resale.

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Of the following statements:
I). In a normal distribution, the coefficient of skewness is 1.0.
II). In normal distribution, approximately 95% of the observations lie within one standard deviation of its mean.

• A.Neither I nor II is true
• B.Only II is true
• C.Only I is true

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