1. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?
a. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for only 5 rather than 10 years, hence that each payment is for $20,000 rather than for $10,000.
b. The discount rate increases.
c. The riskiness of the investment’s cash flows decreases.
d. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.
e. The discount rate decreases.
2. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increases the calculated value of the investment?
a. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for only10 rather than 5 years, hence that each payment is for $10,000 rather than for $20,000.
b. The discount rate decreases.
c. The riskiness of the investment’s cash flows increases.
d. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years.
e. The discount rate increases.
3. Your bank account pays a 6% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?
a. The periodic rate of interest is 1.5% and the effective rate of interest is 3%.
b. The periodic rate of interest is 6% and the effective rate of interest is greater than 6%.
c. The periodic rate of interest is 1.5% and the effective rate of interest is greater than 6%.
d. The periodic rate of interest is 3% and the effective rate of interest is 6%.
e. The periodic rate of interest is 6% and the effective rate of interest is also 6%.
4. Your bank account pays an 8% nominal rate of interest. The interest is compounded quarterly. Which of the following statements is CORRECT?
a. The periodic rate of interest is 2% and the effective rate of interest is 4%.
b. The periodic rate of interest is 8% and the effective rate of interest is greater than 8%.
c. The periodic rate of interest is 4% and the effective rate of interest is less than 8%.
d. The periodic rate of interest is 2% and the effective rate of interest is greater than 8%.
e. The periodic rate of interest is 8% and the effective rate of interest is also 8%.
1. What is one item that must be included in a method’s header if it can receive a parameter?
A) local parameter name
B) global parameter name
C) parameter’s client
D) return data structure
2. A ____ is one that sends an exception object out of a method so it can be handled elsewhere.
A) catch statement
B) throw method
C) catch block
D) throw statement
3. Everything is an object, and every object is a member of a ____.
A) class
B) method
C) case
D) process
4. What will be the output of the below program? List what will be out-putted to the screen and explain your answer.
class Class_name
main()
// Declarations
num index
num SIZE = 10
num numbers[SIZE] = 0,0,0,0,0,0,0,0,0,0
index = 0
while index < SIZE
numbers[index]= index * 10
index = index + 1
endwhile
output “The Output is: ”
while index > 0
index = index – 1
output numbers[index]
endwhile
return
endClass
1. When illegal division by 0 takes place, an Exception object is not created automatically by the object-oriented language application.
A) True
B) False
2. Creating multiple methods with the same name, which will act differently and appropriately when used with different types of objects, is known as polymorphism.
A) True
B) False
3. A ____ reference is an automatically created variable that holds the address of an object and passes it to an instance method whenever the method is called.
A) key
B) public
C) that
D) this
4. A method’s ____ consists of the method’s statements.
A) body
B) space
C) space
D) group
1. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?
a. The annual payments would be larger if the interest rate were lower.
b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7 year amortization plan.
c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower.
d. The last payment would have a higher proportion of interest than the first payment.
e. The proportion of interest versus principal repayment would be the same for each of the 7 payments.
2. A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT?
a. The annual payments would be larger if the interest rate were lower.
b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7 year amortization plan.
c. The proportion of each payment that represents interest as opposed to repayment of principal would be higher if the interest rate were lower.
d. The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher.
e. The proportion of interest versus principal repayment would be the same for each of the 7 payments.
3. You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increases the calculated value of the investment?
a. The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for only10 rather than 5 years, hence that each payment is for $10,000 rather than for $20,000.
b. The discount rate decreases.
c. The riskiness of the investment’s cash flows increases.
d. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years.
e. The discount rate increases.
4. Which of the following statement is CORRECT?
a. A time line is not meaningful unless all cash flows occur annually.
b. Time lines are useful for visualizing complex problems prior to doing actual calculations.
c. Time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly.
d. Time lines cannot be constructed for annuities where the payments occur at either the beginning or the end of the periods.
e. Some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amounts.
1. ____ is the process of creating a new, derived class from a base class.
A) Accessibility
B) Encapsulation
C) Inheritance
D) Polymorphism
2. A method can be used more than once within a program or in other programs.
A) True
B) False
3. The object-oriented techniques to manage errors such as dividing a value by 0 comprise the group of methods known as ____.
A) exception handling
B) error handling
C) exception processing
D) error processing
4. You can write as many constructors for a class as you want, as long as they all have different ____ lists.
A) object
B) data field
C) method
D) parameter
12 years ago
Purchase the answer to view it
1solutions.doc
