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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 | ||||||
40. The decision rule for net present value is to: A) accept all projects with undiscounted...
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