True or False If several independent projects are considered, the one(s) with the highest PIs should be chosen If two mutually exclusive projects are under consideration and using the PI for analyzing the projects, then only the one with the higher PI should be selected.
Q: c) d) Which project(s) would you select if you used the IRR methods. Why? If these were mutually…
A: Answer C: Project B should be selected as it has a higher IRR.
Q: a. Calculate the projects’ NPVs, IRRs, MIRRs, regular paybacks, and discounted paybacks. b. If the…
A: Note : As per the bartelby guidelines only first two parts will be answered. Given information :
Q: stems from the B/C ra
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Q: a. Calculate NPV for each project. Do not round intermediate calculations. Round your answers to the…
A: Net Present Value: It represents the present worth of the project in absolute profitability. It is…
Q: Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure.…
A: From the given graph of NPV vs required rate, we can see that at the required rate of 8% both A and…
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A: According to the requirement of the question, question 4 and 5 given in the image and the ones…
Q: Suppose Tapley Inc. uses a WACC of 8% for below-average risk projects, 10% for average-risk…
A: IRR (Internal Rate of Return) is the interest rate where net present value (NPV) of a project equals…
Q: Answer this question as it is pertaining to two MUTUALLY EXCLUSIVE projects on the following figure.…
A: IRR internal rate of return is where net present value is zero.
Q: What is the NPV decision rule for discretionary mutually exclusive projects? A. Accept the project…
A: There are two types of projects: Independent projects. Mutually exclusive projects. Independent…
Q: When faced with a set of independent projects, one should select (choose the best answer) O all…
A: NPV: Net present value is a method to find out a project or investments current value by…
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A: There really are two categories of capital investment projects: independent projects which do not…
Q: The overall rate of return needs to be checked for multiple mutually exclusive projects when only…
A: When decision has to be made while comparing one project with other projects and out of which only…
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Q: Many times, project decision makers do not rely solely on financialhurdles, such as return on…
A: Intangible factors are those factors which can not be seen touched or felt. These factors are really…
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A: The internal rate of return method is a capital budgeting method which helps in finding out the rate…
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A: The question is related to crossover rate of return i.e cost of capital at which the Net Present…
Q: The government is contemplating between two projects , A and B . Suppose project A has a positive…
A: A benefit–cost ratio is a cost–benefit analysis measure that seeks to summarize a project net value…
Q: When faced with a set of independent projects, one should select (choose the best answer) O all…
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Q: f the projects are mutually exclusive, highest payback period project will accept normally. a. True…
A: Payback period is the time it takes to recover the cost of an investment
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A: NPV indicate actual dollar amount of benefit added by the project. It can be calculated NPV =present…
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A: Net present value (NPV) is the contrast between the present value of money inflows over some…
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A: Expected NPV: It is the weighted average of all NPVs. It is resulted when the weighted values are…
Q: What is crossover rate and why is it important when evaluating two projects?
A: The process through which a company evaluates possible big projects or investments is called capital…
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A: Mutually exclusive projects are those projects which compete each other for capital and resources.
Q: Is it possible for conflicts to exist between the NPV and the IRR when independent projects are…
A: Meaning of NPV= Net present Value NPV is used to analyse the decisions of investments in any project…
Q: Explain why NPV is generally preferred over IRR when choosing among competing or mutually exclusive…
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Q: When two mutually exclusive projects are being compared, explain whythe short-term project might be…
A: Mutually exclusive projects are the projects with same purpose. Hence, a company chooses only one…
Q: If three investment alternatives all have some degree of risk and different expected returns, which…
A: If three investment alternatives all have some degree of risk and different expected returns. The…
Q: Which of the following is not a criterion that is used to determine whether a project is acceptable…
A: A project is accepted when NPV is greater than or equal to zero. If NPV is Negative then the project…
Q: Please explain the answer thoroughly and support it with an example. True or False: In…
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A: Answer: The correct answer is TRUE.
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A: Internal Rate of Return (IRR) is that discounting rate at which Net Present Value of the project is…
Q: When faced with a set of independent projects, one should select (choose the best answer) O all…
A: When there are set of projects, selection of a project will be based on any of the following options…
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A: The mutually exclusive projects are those selection of one project excludes the selection of another…
Q: What is Project A's NPV? Do not round intermediate calculations. Round your answer to the nearest…
A: Net Present Value: It is the present worth of the project's cash flow. It is calculated by reducing…
Q: When evaluating mutually exclusive projects with different lives and different levels of risk, which…
A: Please find the answer to the above question below:
Q: Consider IRR for a Nonsimple Project: Mixed Investment?
A: Answer: Mixed investment is an investment during the investment period in which a company borrows…
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'
Q: When faced with a set of independent projects, one should select (choose the best answer) all…
A: Positive NPV occurs only when the present value of all inflows is greater than the present value of…
Q: Explain why the IRR may contradict the ranking of NPV and therfore not recmmeneded to use when…
A: For single and Individual projects with conventional cash flows, there is no conflicts or…
Q: 5. Which one below is true about IRR analysis when comparing 2 mutually exclusive alternatives? A.…
A:
Q: Which of the following were listed as potential Problems or Issues associated with Using a Rate of…
A: Correct issues of ROR Approach- (2, 3, and 5)
Q: .When using the NPV method the decision making rationale includes the following (select all that…
A: NPV : it the difference between PV of cash inflows and PV of cash outflows.
Q: How do you apply the Net Present Value rule when multiple projects are available and you have the…
A: If the NPV is positive, the project should be accepted. If the NPV is negative the project should be…
Q: Describe one advantage and one disadvantage of the NPV methodology of evaluating proposed projects
A: The net present value of the NPV technique is that it considers the essential thought that a future…
True or False
If several independent projects are considered, the one(s) with the highest PIs should be chosen
If two mutually exclusive projects are under consideration and using the PI for analyzing the projects, then only the one with the higher PI should be selected.
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- When faced with a set of independent projects, one should select (choose the best answer) A. all projects with a positive NPV or an IRR greater than the hurdle rate or a PI greater than one. B. all projects with a PI greater than one. C. all projects with an IRR greater than the hurdle rate D. all projects with a positive NPV or an IRR greater than the hurdle rate. E. all projects with a positive NPV or a PI greater than the one. F. all projects with a positive NPV G. all projects with an IRR greater than the hurdle rate or a Pl greater than one.When faced with a set of independent projects, one should select (choose the best answer) A. all projects with an IRR greater than the hurdle rate or a Pl greater than one. B. all projects with a positive NPV or a Pl greater than the one. all projects with a positive NPV or an IRR greater than the hurdle rate or a PI greater than one. C.all projects with a positive NPV or an IRR grcater than the hurdle rate. D. all projects with a Pl greater than one, all projects with a positive NPV E. all projects with an IRR greater than the hurdle rateWhen faced with a set of independent projects, one should select (choose the best answer) O all projects with a positive NPV or an IRR greater than the hurdle rate. O all projects with an IRR greater than the hurdle rate O all projects with a positive NPV O all projects with a positive NPV or an IRR greater than the hurdle rate or a PI greater than one. O all projects with a positive NPV or a PI greater than the one. O all projects with a Pl greater than one. O all projects with an IRR greater than the hurdle rate or a Pl greater than one.
- When faced with a set of independent projects, one should select (choose the best answer) a. all projects with a positive NPV or an IRR greater than the hurdle rate or a PI greater than one. b. all projects with a positive NPV or an IRR greater than the hurdle rate. c. all projects with an IRR greater than the hurdle rate d. all projects with an IRR greater than the hurdle rate or a PI greater than one. e. all projects with a positive NPV f. all projects with a positive NPV or a PI greater than the one. g. all projects with a PI greater than one.a. Explain why the IRR may contradict the ranking of NPV and therfore not recmmeneded to use when choosing among mutually exclusive projects.\ (5 lines) b. Give two possible examples of such projects. (choose realistic projects, or actual projects you know of) Exaplain your choice?29....When using the NPV method the decision making rationale includes the following (select all that apply): a.If projects are mutually exclusive, accept the project with the highest positive NPV. b.If projects are independent, accept if the project NPV<0. c.If projects are independent, accept if the project NPV>0 d.If the projects are mutually exclusive, accept the project with lowest NPV.
- Do NPV and IRR always yield the same conclusion (accept or reject a project)? If not, when do they not yield the same conclusion? Short Answer Toolbar navigation BIUS AWhen faced with a set of independent projects, one should select (choose the best answer) all projects with a positive NPV or an IRR greater than the hurdle rate or a Pl greater than one. all projects with a positive NPV all projects with an IRR greater than the hurdle rate or a Pl greater than one. all projects with a positive NPV or an IRR greater than the hurdle rate. all projects with an IRR greater than the hurdle rate all projects with a positive NPV or a Pl greater than the one. all projects with a Pl greater than one.Describe one advantage and one disadvantage of the NPV methodology of evaluating proposed projects
- Which of the following were listed as potential Problems or Issues associated with Using a Rate of Return Approach to justifying single or multiple Mutually Exclusive projects? Note: This is a Multiple Answer question. Please select all of the following options you think are correct? O The ROR calculations are typically more complex than the PW, AW, or FW methods and frequently require the use of trial and error techniques. O You cannot rely on the best Mutually Exclusive project to have the highest ROR. O An incremental approach is required to reliably determine the best project when comparing multiple Mutually Exclusive projects with the ROR approach. O This method assumes that any net positive cash flows are reinvested at the ROR rate. If the ROR rate is substantially larger than MARR, this might not be a realistic assumption. OFor any sequence of Net Cash Flows with more than one sign chance over the life of the project there may be more than one ROR value that satisfies the Rate…Which project below would you consider acceptable? One whose IRR is greater than the MARR One whose MARR is greater than the IRR O One whose RIC is less than the MARR One whose MARR is greater than the MIRRWhat would you recommend if the benefit / cost ratio is >1: Select one: a. Benefit/cost ratio always =1 b. The project must be rejected. c. Benefit / cost ratio cannot be >1 d. The project must be accepted