True,
If a project has a negative NPV, meaning its cash outflows exceed its cash inflows, then the project is rejected.
A project is not considered acceptable if it has a negative NPV. True False
NPV can be negative if the IRR is positive. Group of answer choices True False
Which of the following statements is FALSE? O A. The NPV will be positive if the IRR is less than the cost of capital O B. The IRR can be positive even if the NPV is negative OC. The NPV method is not affected by the multiple IRR problem. OD. If the multiple IRR problem does not exist, any independent project acceptable by NPV method will also be acceptable by the IRR method. O E. When IRR = k (the...
A project is considered successful if it meets budget and schedule requirements. True False The critical path is the sequence of activities in a network that defines the overall duration of the project. True False A fundamental step in managing a project supply chain is to measure the performance of the chain and adjust the flow of resources as needed. True False 24 Eli Lilly, a global pharmaceutical company, uses a functional structure to organize its research and development projects...
Question 1Which of the following is (are) true? a) If the net present value (NPV) is negative, then the profitability index must be less than zero. b) If the IRR of a project is greater than one (1), then the project should be accepted. c) Under capital rationing conditions, a firm can select all acceptable projects regardless of the initial investment required. d) If two projects are mutually exclusive, selecting one project prohibits the acceptance of the other project. e) None of the above statements...
1. If the NPV from a project is positive it must be that the internal rate of return is lower than the discount rate used. the project is not acceptable on a risk adjusted basis. this project is preferred to any other mutually exclusive project. accepting the project increases the value of the firm. 5 Question 9 (2 points) 1. Which of the following is not a rationale for using the NPV method in capital budgeting? An NPV of zero...
A project should be accepted if the: A. NPV is positive B. NPV is negative c. accounting rate of return is positive D. accounting rate of return is negative
QUESTION 12 Opportunity costs should be included in the analysis of a project. True False QUESTION 13 Sunk costs are considered cash flows of a project. True False QUESTION 14 The crossover point is defined as the discount rate that: Indicates the point where the IRR equals zero as IRR moves in a downward direction. Causes the net present value of a project to equal zero. Causes the IRR of one project to exceed the IRR of a second project....
True or False? A negative Mantoux reaction has induration.
WWhy this statement is false? d). Shareholders have an incentive to invest in negative-NPV projects that are risky, even though a negative-NPV project destroys value for the firm overall. This is because that the equity holders will benefit at the expense of the debt holders. When securities are fairly priced, debtholders of the firm will bear these agency costs. (1 mark) F
A proposed project has a positive NPV when evaluated at the company cost of capital. If the firm employs debt in its capital structure, will the project remain acceptable after evaluation with the WACC? A) there will be no change in the project's NPV. B) the project may now become unacceptable. C) Yes, using the WACC will increase the NPV. D) No, using the WACC will decrease the NPV. Which one?