The University of Central Florida (UCF) Wanted "To Create a Town

question 102

Multiple Choice

The University of Central Florida (UCF) wanted "to create a town center where students can live, eat, study and revel in college traditions like football." In addition, the university needed funding to build dorms that would house 2000 students. UCF was able to secure financing by promising to pay a lender a specific amount of money on specific dates. This transaction takes place in the ________ market for ________ capital. www.sptimes.com 10/14/2007

• A) loan; physical
• B) bond; financial
• C) stock; financial
• D) loan; financial

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Definitions:

Annual Cash Inflows

The total amount of money, primarily from operating activities, investments, and financing, that enters a company within a year.

Net Present Value Method

A method in capital budgeting that measures the profitability of an investment by calculating the present value of its expected cash flows minus the initial cost.

Annual Return

The percentage gain or loss on an investment over a one-year period.

Investment Decision

The process of evaluating and selecting where to allocate financial resources to achieve anticipated financial returns or gains.