Grand FIN650 Module 3 Exam/Grand FIN650 Module 3 Exam

Question

1. Cyberhost Corporation's sales were $225 million last year. If sales grow at 6% per year, how large (in millions) will they be 5 years later?

A. $271.74

B. $286.05

C. $301.10

D. $316.16

E. $331.96

N 5

I/YR 6.0%

PV $225.00

PMT $0.00

FV $301.00

2. Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT?