# BUSN 278 Midterm Exam Questions

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https://hwguiders.com/downloads/busn-278-midterm-exam-solution BUSN 278 Midterm Exam Solution 1. Question : (TCO 4) It is important that budgets be accepted by: 2. Question : (TCO 5) The qualitative forecasting method that individually questions a panel of experts is ________________ 3. Question : (TCO 3) The regression statistic that measures how many standard errors the coefficient is from zero is the ________________ 4. Question : (TCO 1) Which of the following statements regarding research and development is incorrect? 5. Question : (TCO 2) Priority budgeting that ranks activities is known as: 6. Question : (TCO 6) Which of the following is a disadvantage of the payback technique? 7. Question : (TCO 1) There…show more content…
Part (b) Calculate the seasonal forecast of sales for February of Year 3. Part (c) Which forecast do you think is most accurate and why? 11. Question : (TCO 6) Davis Company is considering two capital investment proposals. Estimates regarding each project are provided below: Project A Project B Initial Investment \$800,000 \$650,000 Annual Net Income \$50,000 45,000 Annual Cash Inflow \$220,000 \$200,000 Salvage Value \$0 \$0 Estimated Useful Life 5 years 4 years The company requires a 10% rate of return on all new investments. Part (a) Calculate the payback period for each project. Part (b) Calculate the net present value for each project. Part (c) Which project should Jackson Company accept and why? 12. Question : (TCO 6) Top Growth Farms, a farming cooperative, is considering purchasing a tractor for \$468,000. The machine has a 10-year life and an estimated salvage value of \$32,000. Top Growth uses straight-line depreciation. Top Growth estimates that the annual cash flow will be \$78,000. The required rate of return is 9%. Part (a) Calculate the payback period. Part (b) Calculate the net present value. Part (c) Calculate the accounting rate of