ZuoTi.Pro
Question

8) Which of the following best describe Net Present Value (NPV), Internal Rate of Return (IRR) and Payback (PB): O d) None of

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer: Option d is correct

Payback ratio refers to the time period taken to recover the initial investment in a project, it does not consider time beyond payback period (so it does not considers total time and size or value of a project )
IRR depends on the cash inflows with respect to the cash outflows, it does not considers size or value or total time period of a project. NPV refers to the net present value of a project's cash flows.

Please let me know if you have any difficulty in understanding the solution

0 0
Add a comment
Know the answer?
Add Answer to:
8) Which of the following best describe Net Present Value (NPV), Internal Rate of Return (IRR)...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Blue Hamster Manufacturing Inc.: Last Tuesday, Blue Hamster Manufacturing Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Zeta is...

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company: Last Tuesday, Cute Camel Woodcraft Company lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Lambda is...

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make Capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project...

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project...

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project...

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project...

  • 3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return...

    3. Understanding the IRR and NPV The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Green Caterpillar Garden Supplies Inc.: Last Tuesday, Green Caterpillar Garden Supplies Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project...

  • The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...

    The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Blue Hamster Manufacturing Inc.: Last Tuesday, Blue Hamster Manufacturing Inc. lost a portion of its planning and financial data when its server and its backup server crashed. The company’s CFO remembers that the internal rate of return (IRR) of Project Gamma is 11.30%, but he can’t recall how much...

  • ​​​​​​​Net Present Value and Other Investment Rules Describe how net present value is used in the...

    ​​​​​​​Net Present Value and Other Investment Rules Describe how net present value is used in the financial decision-making process. Explain the disadvantages of using the payback method. Compare and contrast the internal rate of return (IRR) method from the net present value method (NPV).

  • The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are...

    The net present value (NPV) and internal rate of return (IRR) methods of investment analysis are interrelated and are sometimes used together to make capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Last Tuesday, Cold Goose Metal Works Inc. lost a portion of its planning and financial data when both its main and its backup servers crashed. The company's CFO remembers that the internal rate of return (IRR) of Project Lambda is 11.3%, but he can't...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT