1- How would you estimate the opportunity cost of the existing assets now being used by an existing bakery in your appraisal of an investment project to expand the bakery using the Net Replacement Cost approach?2-What is the criterion used by an analyst to decide whether the net replacement cost or the liquidation value is an appropriate way to measure the opportunity cost of the existing assets?3-Under what circumstances (at least two) one should have a real residual value of land that is greater than its initial market price?4-What is the main objective or question addressed by a cost-effectiveness analysis? How does a cost-effectiveness analysis differ from a cost-benefit analysis?5-Please provide three examples of expenditure decisions where a cost-effectiveness analysis can be used to assist decision makers in the selection of alternative projects.6-What is meant by the marginal or incremental cost-effectiveness ratio? How is it measured?7-What are two shortcomings or defects of cost-effectiveness analysis? Explain?8-When constructing the incremental cash flow profile of a project you need to compare the situation with the project with present situation before the project is undertaken. Briefly explain why is this statements True, False or Uncertain.9-A project is experiencing an increase in sales. This implies that there will be an increase in its net cash flow. Briefly explain why is this statements True, False or Uncertain.10-A debt service reserve account usually restricts the payment of dividends in order to accumulate cash for the purpose of servicing the debt of a project.Briefly explain why is this statements True, False or Uncertain.11-A project with a bigger IRR should always be preferred to the one with a lower IRR.If ADSCR and LLCR figures are not satisfactory, rather than rejecting a project, an investor should opt for bridge financing. Briefly explain why is this statements True, False or Uncertain.12-Why would you undertake a risk analysis of a project? How would you use the results of such an analysis?13-Explain what is meant by project monitoring? What aspects of a project are monitored?4-An analyst has stated that the internal rate of return (IRR) is an unreliable criterion for selecting projects when the projects are mutually exclusive. The analyst has also stated that the internal rate of return (IRR) is a reliable investment criterion in all other circumstances. Briefly explain why this analysis is correct, or not correct.15 What does Net Present Value (NPV) measure and how is interpreted for values of zero, greater and lower than zero?16 An analyst argues that maximizing a project’s ratio of (PV of benefits / PV of costs), implies the project’s NPV would also be maximized? Do you agree with the analyst? Explain your reasoning.
1- How would you estimate the opportunity cost of the existing assets now being used by an existing bakery in your appraisal of an investment project to expand the bakery using the Net Replacement Cost approach?2-What is the criterion used by an analyst to decide whether the net replacement cost or the liquidation value is an appropriate way to measure the opportunity cost of the existing assets?3-Under what circumstances (at least two) one should have a real residual value of land that is greater than its initial market price?4-What is the main objective or question addressed by a cost-effectiveness analysis? How does a cost-effectiveness analysis differ from a cost-benefit analysis?5-Please provide three examples of expenditure decisions where a cost-effectiveness analysis can be used to assist decision makers in the selection of alternative projects.6-What is meant by the marginal or incremental cost-effectiveness ratio? How is it measured?7-What are two shortcomings or defects of cost-effectiveness analysis? Explain?8-When constructing the incremental cash flow profile of a project you need to compare the situation with the project with present situation before the project is undertaken. Briefly explain why is this statements True, False or Uncertain.9-A project is experiencing an increase in sales. This implies that there will be an increase in its net cash flow. Briefly explain why is this statements True, False or Uncertain.10-A debt service reserve account usually restricts the payment of dividends in order to accumulate cash for the purpose of servicing the debt of a project.Briefly explain why is this statements True, False or Uncertain.11-A project with a bigger IRR should always be preferred to the one with a lower IRR.If ADSCR and LLCR figures are not satisfactory, rather than rejecting a project, an investor should opt for bridge financing. Briefly explain why is this statements True, False or Uncertain.12-Why would you undertake a risk analysis of a project? How would you use the results of such an analysis?13-Explain what is meant by project monitoring? What aspects of a project are monitored?4-An analyst has stated that the internal rate of return (IRR) is an unreliable criterion for selecting projects when the projects are mutually exclusive. The analyst has also stated that the internal rate of return (IRR) is a reliable investment criterion in all other circumstances. Briefly explain why this analysis is correct, or not correct.15 What does Net Present Value (NPV) measure and how is interpreted for values of zero, greater and lower than zero?16 An analyst argues that maximizing a project’s ratio of (PV of benefits / PV of costs), implies the project’s NPV would also be maximized? Do you agree with the analyst? Explain your reasoning.
1- How would you estimate the opportunity cost of the existing assets now being used by an existing bakery in your appraisal of an investment project to expand the bakery using the Net Replacement Cost approach?2-What is the criterion used by an analyst to decide whether the net replacement cost or the liquidation value is an appropriate way to measure the opportunity cost of the existing assets?3-Under what circumstances (at least two) one should have a real residual value of land that is greater than its initial market price?4-What is the main objective or question addressed by a cost-effectiveness analysis? How does a cost-effectiveness analysis differ from a cost-benefit analysis?5-Please provide three examples of expenditure decisions where a cost-effectiveness analysis can be used to assist decision makers in the selection of alternative projects.6-What is meant by the marginal or incremental cost-effectiveness ratio? How is it measured?7-What are two shortcomings or defects of cost-effectiveness analysis? Explain?8-When constructing the incremental cash flow profile of a project you need to compare the situation with the project with present situation before the project is undertaken. Briefly explain why is this statements True, False or Uncertain.9-A project is experiencing an increase in sales. This implies that there will be an increase in its net cash flow. Briefly explain why is this statements True, False or Uncertain.10-A debt service reserve account usually restricts the payment of dividends in order to accumulate cash for the purpose of servicing the debt of a project.Briefly explain why is this statements True, False or Uncertain.11-A project with a bigger IRR should always be preferred to the one with a lower IRR.If ADSCR and LLCR figures are not satisfactory, rather than rejecting a project, an investor should opt for bridge financing. Briefly explain why is this statements True, False or Uncertain.12-Why would you undertake a risk analysis of a project? How would you use the results of such an analysis?13-Explain what is meant by project monitoring? What aspects of a project are monitored?4-An analyst has stated that the internal rate of return (IRR) is an unreliable criterion for selecting projects when the projects are mutually exclusive. The analyst has also stated that the internal rate of return (IRR) is a reliable investment criterion in all other circumstances. Briefly explain why this analysis is correct, or not correct.15 What does Net Present Value (NPV) measure and how is interpreted for values of zero, greater and lower than zero?16 An analyst argues that maximizing a project’s ratio of (PV of benefits / PV of costs), implies the project’s NPV would also be maximized? Do you agree with the analyst? Explain your reasoning.
1- How would you estimate the opportunity cost of the existing assets now being used by an existing bakery in your appraisal of an investment project to expand the bakery using the Net Replacement Cost approach?2-What is the criterion used by an analyst to decide whether the net replacement cost or the liquidation value is an appropriate way to measure the opportunity cost of the existing assets?3-Under what circumstances (at least two) one should have a real residual value of land that is greater than its initial market price?4-What is the main objective or question addressed by a cost-effectiveness analysis? How does a cost-effectiveness analysis differ from a cost-benefit analysis?5-Please provide three examples of expenditure decisions where a cost-effectiveness analysis can be used to assist decision makers in the selection of alternative projects.6-What is meant by the marginal or incremental cost-effectiveness ratio? How is it measured?7-What are two shortcomings or defects of cost-effectiveness analysis? Explain?8-When constructing the incremental cash flow profile of a project you need to compare the situation with the project with present situation before the project is undertaken. Briefly explain why is this statements True, False or Uncertain.9-A project is experiencing an increase in sales. This implies that there will be an increase in its net cash flow. Briefly explain why is this statements True, False or Uncertain.10-A debt service reserve account usually restricts the payment of dividends in order to accumulate cash for the purpose of servicing the debt of a project.Briefly explain why is this statements True, False or Uncertain.11-A project with a bigger IRR should always be preferred to the one with a lower IRR.If ADSCR and LLCR figures are not satisfactory, rather than rejecting a project, an investor should opt for bridge financing. Briefly explain why is this statements True, False or Uncertain.12-Why would you undertake a risk analysis of a project? How would you use the results of such an analysis?13-Explain what is meant by project monitoring? What aspects of a project are monitored?4-An analyst has stated that the internal rate of return (IRR) is an unreliable criterion for selecting projects when the projects are mutually exclusive. The analyst has also stated that the internal rate of return (IRR) is a reliable investment criterion in all other circumstances. Briefly explain why this analysis is correct, or not correct.15 What does Net Present Value (NPV) measure and how is interpreted for values of zero, greater and lower than zero?16 An analyst argues that maximizing a project’s ratio of (PV of benefits / PV of costs), implies the project’s NPV would also be maximized? Do you agree with the analyst? Explain your reasoning.
