FIN 575 Final Exam

1. During the project initiation, a project charter is created. The project charter should include which of the following?

• Project managers expenses

• Analysis of budget

• Selection of the senior project manager

• Projects high-level deliverables

2. A project's budget should be based on a company's

• strategy and financial goals

• profitability

• financial goals and equity

• debt load and equity

3. Earned value management is a technique used to integrate projects

• resources

• scope, schedule, and resources

• schedule, costs, and benefits

• costs and profits

4.Bill's Billiards has total assets of $8 million and a total asset turnover of 2.9 times. If the return on assets is 11%, what is Bill's profit margin?

• 11%

• 4.10%

• 2.50%

• 3.79%

5. What are the acceptance criteria for NPV?

• If the NPV is less that $0, accept the project.

• If the NPV is greater than $0, accept the project.

• If the IRR is equal to 0%, reject the project.

• If the NPV is equal to the discounted payback, accept the project.

6. The risk response plan answers what question?

• What can be done if risk occurs? What is the backup plan?

• What are project costs?

• There is no need to plan for risk seldom occurs in a project.

• How risk is to be managed

7. For the most recent year, Cal's Cats had sales of $380,000, cost of goods sold of $93,000, depreciation expense of $47,000, and additions to retained earnings of $61,420. The firm had $52,000 in interest expense, and 34% tax rate. What were the times interest earned ratio?

• 2.2

• 5.8

• 4.61

• 2.8

8. Bob's Garages has sales of $41 million, total assets of $32 million, and total debt of $11 million. If the profit margin is 12% what is the return on equity (ROE)?