Chp 9 Finance - Question 1 1. Which one of the following...

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Question 1 1. Which one of the following statements is correct in relation to independent projects? Answer Incorrect Correct Answer: B The internal rate of return cannot be used to determine the acceptability of a project that has financing type cash flows. A project with investing type cash flows is acceptable if its internal rate of return exceeds the required return. A project with financing type cash flows is acceptable if its internal rate of return exceeds the required return. The net present value profile is upsloping for projects with both investing and financing type cash flows. Projects with financing type cash flows are acceptable only when the internal rate of return is negative. 0.1 points Question 2 1. You are considering a project with an initial cost of $7,800. What is the payback period for this project if the cash inflows are $1,100, $1,640, $3,800, and $4,500 a year over the next four years, respectively? Answer 3.21 years 3.28 years 3.36 years 4.21 years 4.29 years 0.1 points Question 3 1. Which one of the following is a project acceptance indicator given an independent project
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This note was uploaded on 07/31/2011 for the course FIN 550 taught by Professor Rajneeshsharma during the Summer '11 term at Saint Joseph's University.

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Chp 9 Finance - Question 1 1. Which one of the following...

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