A situation in which taking one investment prevents the taking of another is(are) called: O Net present value profiling. O Operational ambiguity. O Mutually exclusive projects. Issues of scale. Multiple rates of return.
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Q: Which of the following is a disadvantage of the internal rate of return criterion? Select one: a.…
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A: Payback period is the number of years required to get back the initial investment made in a capital…
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A: Part (1): Answer: Net present value approach predicts how much a future project would add to the…
Q: Help question 21
A: NPV = $ 300
Q: hich methods of evaluating a capital investment project ignore the time value of Multiple Choice Net…
A: A Capital Investment project refers to the expenses involved in a project which will eventually help…
Q: Help question 21
A: Rate of return is a profit of an investment over a specified period of time, expressed as…
Q: Which of the following statements is correct? - NPV method is the only method firms should use to…
A: Mutually exclusive projects Mutually exclusive projects are projects that are in direct competition…
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Q: Which of the following is correct?
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A: The correct answer id Option (B).
Q: Which of the following is an advantage of Net present value? a. Investment potential ignored b.…
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Q: O The NPV and IRR methods, when used to evaluate two independent and equally risky projects, will…
A: The discounted technique of net present value (NPV) is used to assess the effectiveness of a…
Q: Consider IRR for a Nonsimple Project: Mixed Investment?
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Q: A project is not economically feasible if MARR is at least bigger than or equal to IRR. Select one:…
A: The Above Statement is 'True'
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- Which of the following is an advantage of Net present value? a. Investment potential ignored b. Useful in evaluating mutually exclusive projects c. Considers time value of money d. Easy to calculateAn investment should be rejected if the IRR is Group of answer choices - equal to the required rate of return - greater than the accounting rate of return - less than the required rate of return - greater than the required rate of returnNet present value: Multiple Choice O is the best method of analyzing mutually exclusive projects. is less useful than the internal rate of return when comparing different-sized projects. cannot be applied when comparing mutually exclusive projects. is very similar in its methodology to the average accounting return. is the easiest method of evaluation for nonfinancial managers. 6
- The development economics is concerned with ________.a. economic, social, and political institutionsb. efficient allocation of scarce resourcesc. imperfect resource and commodity marketsd. none of the abovee. first and second choice onlyWhen different investment rules give conflicting answers, then decisions should be based on the Net Present Value rule, as it is the most reliable and accurate decision rule True FalseUsing IRR, a project is rejected if the IRR a. is equal to the required rate of return. b. is less than the required rate of return. c. is greater than the cost of capital. d. is greater than the required rate of return. e. produces an NPV equal to zero.
- Which of the following methods does not consider the investment’s profitability? ARR Payback NPV IRRIf security A's expected return increases while security B's price increases, then these assets vary in Multiple choice question. a.) opposition b.) tandem c.) no discernible way I have the answer but do not understand why it is oppostion and not tandem...The overall rate of return needs to be checked for multiple mutually exclusive projects when only costs are provided. O True O False
- Match each of the following terms with the best definition. A. Theory of constraints B. Sunk cost C. Differential analysis D. Opportunity cost - Strategy that focuses on reducing bottlenecks. - Revenue forgone from an alternative use of an asset. - Not relevant to future decisions. - Evaluation of how income will change based on an alternative course of action.Net present value: is very similar in its methodology to the average accounting return. is the easiest method of evaluation for nonfinancial managers. cannot be applied when comparing mutually exclusive projects. is less useful than the internal rate of return when comparing different-sized projects. is the best method of analyzing mutually exclusive projects. OO OWhich of the following is a disadvantage of the internal rate of return criterion? Select one: a. It is not a true rate of return. b. It uses an arbitrary benchmark cutoff rate. c. It ignores time value of money, cash flows, and market values. d. It cannot be used to rank independent projects. e. It may lead to incorrect decisions when comparing mutually exclusive investments.