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Unformatted text preview: 4. What are the criticisms of the payback period? 5. Determine the net present value for each of these projects. Should they be accepted? 6. Describe the logic behind the net present value. 7. What would happen to the net present value for each project if the required rate of return increased? If the required rate of return decreased? 8. Determine the internal rate of return for each project. Should they be accepted? 9. How does a change in the required rate of return affect the project's internal rate of return? 10. What reinvestment rate assumptions are implicitly made by the net present value and internal rate of return methods? Which one is better?...
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- Summer '11