ABA CTFA Practice Test - Questions Answers, Page 33
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Question 321

Two mutually exclusive investment proposals have 'scale differences' (i.e., the cost of the projects differ). Ranking these projects on the basis of IRR, NPV, and PI methods give contradictory results.
Question 322

If capital is to be rationed for only the current period, a firm should probably first consider selecting projects by descending order of .
Question 323

The method provides correct rankings of mutually exclusive projects, when one is Not subject to capital rationing.
Question 324

In an NPV sensitivity graph, a steep sensitivity line for a particular input variable means that a in that variable results in a in NPV.
Question 325

One potential problem with sensitivity analysis is that it generally looks at sensitivity 'one variable at a time.' However, one way to judge the sensitivity of results to simultaneous changes in two variables, at least, is to construct an .
Question 326

A bond issue may be retired by:
Question 327

Protective covenants are:
Question 328

Which of the following bonds offer the investor the most protection?
Question 329

A company refunds its bonds for any of the following reasons Except for:
Question 330

The call-option value of a callable bond is likely to be high when:
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