Month End Sale 70% Discount Offer - Ends in 0d 00h 00m 00s - Coupon code: save70

Full Access AFP CTP Tutorials

Page: 17 / 81
Total 1076 questions

Certified Treasury Professional Questions and Answers

Question 65

A treasurer is evaluating a project that will cost $1,000 but will return cash flows of $225, $225, $300, $750, and $750 in years 1 through 5, respectively. The company’s interest rate on its debt is 10% and its marginal cost of capital is 15%. What is the Net Present Value (NPV) of this project?

Options:

A.

$364.74

B.

$459.48

C.

$593.84

D.

$643.47

Question 66

A comprehensive payables service can do all of the following EXCEPT:

Options:

A.

send checks to a vendor.

B.

wire funds to a bank.

C.

set up ACH transfers.

D.

concentrate lockbox deposits.

Question 67

A bank's reserve requirement on demand deposits is 10%, and its earnings credit rate is 6%. If a company uses bank services amounting to $2,600 and has an excess of $550 in earnings credit, what is the average collected balance in the account based on a 30-day month?

Options:

A.

$123,921

B.

$461,889

C.

$585,810

D.

$709,731

Question 68

Which of the following statements are true about the use of different discount rates for different types of projects?

I. Low-risk, short-term projects may be evaluated by using a short-term opportunity cost.

II. High-risk projects may be evaluated by using a discount rate that is greater than the company's normal opportunity cost.

III. A short-term investment (or borrowing) rate may be used as the company's short-term discount rate.

IV. The use of a lower discount rate for riskier projects forces riskier projects to earn higher rates of return.

Options:

A.

I and II only

B.

I and IV only

C.

I, II, and III only

D.

II, III, and IV only

Page: 17 / 81
Total 1076 questions