Homework Answers
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| ans 40 | Correct answer is option - | |||||
| C) Accept the projects with positive net present value | ||||||
| As per NPV if NPV is positive project should be accepted. | ||||||
| ans 41 | Correct answer is option - | |||||
| C) Accept all the the projects with IRR greater than the cost of capital | ||||||
| IRR > requried rate project should be accepted | ||||||
| ans 42 | Correct answer is option - | $ 16,080 | ||||
| year | Cash flow | PVIF @ 14% | Present value | |||
| 0 | -100000 | 1 | $ (100,000) | |||
| 1 | 50000 | 0.877192982 | $ 43,860 | |||
| 2 | 50000 | 0.769467528 | $ 38,473 | |||
| 3 | 50000 | 0.674971516 | $ 33,747 | |||
| NPV = | $ 16,080 | |||||
| ans 43 | Statement is TRUE | |||||
| Dividend is eligible is the stock is hold on record date | ||||||
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