FINCE 3001 Financial Management Final Exam (Qns & Ans) 2026

FINCE 3001 Financial Management Final Exam (Qns & Ans) 2026

1. Which of the following is a primary objective of financial
management?
 a) Profit maximization
 b) Wealth maximization
 c) Sales maximization
 d) Cost minimization
 Correct ANS: b) Wealth maximization
 Rationale: Wealth maximization focuses on increasing the
value of the firm and thus the shareholders' equity over time.
2. In capital budgeting, which of the following methods does not
consider the time value of money?
 a) Net Present Value (NPV)
 b) Internal Rate of Return (IRR)
 c) Payback Period
 d) Profitability Index
 Correct ANS: c) Payback Period
 Rationale: The Payback Period simply measures how long it
takes to recover the initial investment without adjusting for the
time value of money.

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