FINAN 450 Test 3

designated market maker.

A member who acts as a dealer in a limited number of securities on the floor of the NYSE is called a:

Cash inflow in the final year of the project

Boyd Leasing is analyzing a project that requires purchasing $210,000 of new fixed assets. When the project ends, those assets are expected to have an aftertax salvage value of $22,000. How is the $22,000 salvage value handled when computing the net present value of the project?

True

Corporate shareholders may receive a tax break on a portion of their dividend income. True or false?

True

Discounted payback is biased towards short-term projects. True or false?

act as dealers.

NYSE designated market makers:

The internal rate of return is defined as the:

discount rate which causes the net present value of a project to equal zero