South Texas College

MHSM 3335

WEEK 9 - QUIZ

1)The figures on the present value table represent the value of:

2. True or False? Common sizing is sometimes called horizontal analysis
3. True or False? The average investment amount is arrived at by taking the total unrecovered asset cost at the beginning of estimated useful life plus the unrecovered asset cost at the end of estimated useful life an multiplying by 2.
4. The payback period concept is used extensively in evaluating whether to invest in :
5. The type of comparative analysis described in the previous question is also sometimes called:

6. True or False? Present value tables are also called “look-up tables” because one can look up the answer.
7. Forecast assumptions can be determined by:

8. True or False? Trend analysis is sometimes called horizontal analysis.
9. In one example within the text, three hospital’s general services are compared (all for the same year). The “laundry” line item’s dollar amounts are $80,000,

$300,000 and $90,000, respectively. However, when the dollars are converted to percentages , each of these amounts is 10% of the total expense for the particular hospital . This type of comparative analysis is known as: