# Between 1 and 2 years incorrect question 7 0 1 pts

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between 1 and 2 years.IncorrectQuestion 70 / 1 ptsComparing net present value and internal rate of returnalways results in the same accept/reject decision.always results in the same ranking of projects.may give different accept/reject decisions.is only necessary on mutually exclusive projects.Actually, although one may get different results when ranking projects usingNPV or IRR, the results will always be the same for the accept/reject decisionbecause NPV uses cost of capital as the discount rate and IRR is compared tocost of capital for the accept/reject decision, they are using the samebenchmark. Review Module 6 and try again.
Question 81 / 1 ptsWhen the net present value is negative, the internal rate of return is______
greater than or equal toequal toQuestion 91 / 1 ptsWhat is the IRR for the following project if its initial after-tax cost is\$5,000,000 and it is expected to provide after-tax operating cash flows of(\$1,800,000) in year 1, \$2,900,000 in year 2, \$2,700,000 in year 3 and\$2,300,000 in year 4?
Correct! Using the spreadsheet IRR function, put each of these figures in a cell, forexample, put -5000000 in cell A1 (use a negative because it is a cash outlay), thenput -1800000 in cell A2, 2900000 in cell A3, 2700000 in A4, and 2300000 in A5. Incell A6 type =IRR(A1:A5).
Question 101 / 1 ptsA real option refers to:opportunities that enable managers to alter cash flows and risk.
Correct. Real options are opportunities that are embedded in capital projects thatenable managers to alter their cash flows and risk in a way that affects projectacceptability (NPV).projects that are feasible with rationed capital.projects that require only real income, there are no opportunity costs.opportunities for funding through the use of affordable debt and equity.Quiz Score:8out of 10
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