NATIONAL OPEN UNIVERSITY OF NIGERIA

14/16 AHMADU BELLO WAY, VICTORIA ISLAND, LAGOS

SCHOOL OF MANAGEMENT SCIENCES

MARCH, 2014 EXAMINATION

 
Course Code:      ENT 426                                  Credit Unit: 2
Course Title:       INVESTMENT ANALYSIS
Time Allowed:    2Hrs
Instructions:  1. Attempt question Number one (1) and any other two (2).
 
2. Question number 1 is compulsory and carries 30 marks, while the other
questions carry 20 marks each
 
3. Present all your points in coherent and orderly manner
 
Question 1.
Consider the following data pertaining to an investment opportunity Nigeria Com Ltd
(a) Initial cost of investment N150, 000.
(b) Expected net cash flows:
Year    Amount
1          N30,000
2          N40,000
3          N40,000
4          N50,000
5          N60,000
c. Corporation’s cost of capital: 13 percent.
 
Required
Determine the PBP of the investment opportunity for the corporation.      (30marks)
 
Question 2.
Mention and describe the three categories of projects.                                         (20marks)
 
Question 3.
Identify and describe the Discounted Cash Flow Techniques (DCF) of Investment
Appraisal                                                                                                                    (20marks)
 
Question 4.
Explain what you understand by mutually exclusive projects                            (20marks)
 
Question 5.Explain what you understand by these two investment decisions.
a.      Replacement decision
b.      Expansion decision                                                                                            (20marks)
You can get the exam summary answers for this course from 08039407882

Check anoda sample below