FIN534assignchap10Hard

FIN534assignchap10Hard - 1 Which of the following...

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1. Which of the following statements is CORRECT? a. The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. b. The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. c. The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. d. The net present value method (NPV) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. NPV is regarded as the best method in evaluating capital budgeting projects PG 411 in our text. e. The modified internal rate of return method (MIRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. 2. Projects A and B have identical expected lives and identical initial cash outflows (costs). However, most of one project’s cash flows come in the early years, while most of the other project’s cash flows occur in the later years. The two NPV profiles are given below: See chart on homework: Which of the following statements is CORRECT? a.
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This note was uploaded on 03/07/2012 for the course FIN 534 taught by Professor Nalla during the Spring '08 term at Strayer.

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FIN534assignchap10Hard - 1 Which of the following...

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