MCQ Collection
China MCQs
Practice China questions with answers and explanations.
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Correct Answer: B. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
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Correct Answer: C. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Correct Answer: 845.28
Explanation:
PV=1150/(1+0.08)^4=845.28.
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Correct Answer: D. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
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Correct Answer: A. A positive NPV indicates value above the required return under the stated assumptions
Explanation:
NPV discounts incremental cash flows at the required rate and measures value created.
Correct Answer: 1091.51
Explanation:
PV=1300/(1+0.06)^3=1091.51.
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Correct Answer: D. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
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Correct Answer: A. A future cash flow is discounted because money available earlier can earn a return
Explanation:
Present value converts future cash flows using a required return that reflects time and risk.
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Correct Answer: B. Parties should assess authority, validity, performance and remedies under applicable law
Explanation:
A legal analysis moves from formation and authority through performance, breach and remedy.
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Correct Answer: D. Business conduct should be tested against rules on restrictive agreements, dominance and unfair competition
Explanation:
Competition-law risk depends on conduct, market context and the applicable statutory tests.
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Correct Answer: A. Governance rights and duties should be analysed under the current company and securities rules
Explanation:
Corporate governance allocates authority and imposes duties; exact requirements depend on current law and transaction type.
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Correct Answer: C. Parties should assess authority, validity, performance and remedies under applicable law
Explanation:
A legal analysis moves from formation and authority through performance, breach and remedy.