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Sandy’s Sunshine, Inc. is considering a new project.  The project has an initial cash outflow of $13,000 and cash inflows of $2,000 in Year 1, $6,900 in Year 2, and $2,400 in Year 3? The discount rate is 9.5 percent.  What is the NPV of this proposed project?  (select the closest answer)

In our text, there was much discussion about the appropriate discount rate to use when analyzing a project.  The discount rate that makes the net present value of an investment exactly equal to zero is called the:

The Wacky Widget Wizard, Inc. (WWW) uses payback as an initial screening on projects.  A new widget costs $4,500 and is expected to return $1,750 a year for three years and then be worthless. What is the payback period for this new widget?  

A conflict of interest between the stockholders and managers of a firm is referred to as the:

Asymmetric information may result in the following types of information distortions:

Stock options granted to a corporation’s managers are primarily designed to:

This class is all about capital budgeting!  From the list below, select the statement which describes a capital budgeting decision.

When establishing a new business, deciding on the form of business ownership has an impact on many aspects of the business.  The form of business structure with typically the greatest potential for agency problems is the __________________________.

Melissa’s Boutique is a small business in the 21 percent tax bracket.  The business had sales in 2019 of $820,000.  During the year, costs were $540,000 and interest expense was $36,000.   Melissa’s Boutique had depreciation expense of $59,000.  What was the net income for Melissa’s Boutique in 2019?

Type your listening answers here. Start by numbering your answers in the following way: 1. 2. 3. and so on.