Answer net present value discounted payback internal rate of return

Answer net present value discounted payback internal

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Answer net present value discounted payback internal rate of return profitability index payback Correct Feedback Refer to section 9.1 Incorrect Feedback Refer to section 9.1 Add Question Here Question 14 Multiple Choice Question If a project has a net present value equal to zero, then: Answer the total of the cash inflows must equal the initial cost of the project. the project earns a return exactly equal to the discount rate. a decrease in the project's initial cost will cause the project to have a negative NPV. any delay in receiving the projected cash inflows will cause the project to have a positive NPV. the project's PI must be also be equal to zero. Correct Feedback Refer to sections 9.1 and 9.6 Incorrect Feedback Refer to sections 9.1 and 9.6 Add Question Here Question 15 Multiple Choice Question Rossiter Restaurants is analyzing a project that requires $180,000 of fixed assets. When the project ends, those assets are expected to have an aftertax salvage value of $45,000. How is the $45,000 salvage value handled when computing the net present value of the project? Answer reduction in the cash outflow at time zero cash inflow in the final year of the project cash inflow for the year following the final year of the project cash inflow prorated over the life of the project not included in the net present value Correct Feedback Refer to section 9.1 Incorrect Feedback Refer to section 9.1 Add Question Here Question 16 Multiple Choice Question Which one of the following increases the net present value of a project? Answer an increase in the required rate of return an increase in the initial capital requirement a deferment of some cash inflows until a later year an increase in the aftertax salvage value of the fixed assets a reduction in the final cash inflow Correct Feedback Refer to section 9.1 Incorrect Feedback Refer to section 9.1 Add Question Here Question 17 Multiple Choice Question Net present value: Answer is the best method of analyzing mutually exclusive projects. is less useful than the internal rate of return when comparing different sized projects. is the easiest method of evaluation for non-financial managers to use. is less useful than the profitability index when comparing mutually exclusive projects. is very similar in its methodology to the average accounting return.
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Correct Feedback Refer to section 9.1 Incorrect Feedback Refer to section 9.1 Add Question Here Question 18 Multiple Choice Question Which one of the following is a project acceptance indicator given an independent project with investing type cash flows? Answer profitability index less than 1.0 project's internal rate of return less than the required return discounted payback period greater than requirement average accounting return that is less than the internal rate of return modified internal rate of return that exceeds the required return Correct Feedback Refer to sections 9.3 through 9.6 Incorrect Feedback Refer to sections 9.3 through 9.6 Add Question Here Question 19 Multiple Choice Question Why is payback often used as the sole method of analyzing a proposed small project?
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