A mutually exclusive project is a project whose A acceptance or rejection has

A mutually exclusive project is a project whose a

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50. A mutually exclusive project is a project whose: A. acceptance or rejection has no effect on other projects. B. NPV is always negative. C. IRR is always negative. D.acceptance or rejection affects other projects. E. cash flow pattern exhibits more than one sign change. Difficulty level: Easy Topic: MUTUALLY EXCLUSIVE PROJECTS Type: CONCEPTS 51. The two fatal flaws of the internal rate of return rule are: Difficulty level: Medium Topic: INTERNAL RATE OF RETURN Type: CONCEPTS
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Chapter 05 - Net Present Value and Other Investment Rules 5-19 52. A project will have more than one IRR if: Difficulty level: Easy Topic: INTERNAL RATE OF RETURN Type: CONCEPTS 53. Using internal rate of return, a conventional project should be accepted if the internal rate of return is: Difficulty level: Easy Topic: INTERNAL RATE OF RETURN RULES Type: CONCEPTS 54. The internal rate of return may be defined as: A.the discount rate that makes the NPV equal to zero. B. the difference between the market rate of interest and the NPV. C. the market rate of interest less the risk-free rate. D. the project acceptance rate set by management. E. None of the above. Difficulty level: Medium Topic: INTERNAL RATE OF RETURN Type: CONCEPTS
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Chapter 05 - Net Present Value and Other Investment Rules 5-20 55. The problem of multiple IRRs can occur when: Difficulty level: Easy Topic: MULTIPLE INTERNAL RATE OF RETURNS Type: CONCEPTS
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