which of the following statements about the NPV rule are true?
the NPV rule says that the NPV of an action is positive, you should take that action.
Which of the following is true about comparing NPV and IRR rule? (a) NPV is strictly better than IRR so no CFO or CEO in the real world actually uses IRR. (b) No matter what the cash flow patterns are, with unlimited resources and same project lives, we can always choose the one with highest NPV among mutually exclusive projects. (c)When mutually exclusive projects have different lives, we should use IRR rather than NPV rule. (d) NPV rule guarantees correct...
Which of the following statements about sample size is true? a. A rule of thumb is to include at least two members from every subgroup to be analyzed. b. If the sample size is very small, a judgmental sample may be more reliable and representative than a probability sample. c. The determination of sample size should not involve cost. d. Low sampling costs do not justify a larger sample. e. None of the above.
Which of the following statements about federal independent agencies is true? A. Agencies may exercise rule-making and adjudicatory power, but they may not exercise investigatory power because that power is reserved to law enforcement. b. While agencies possess investigative and adjudicatory power, they may not exercise rule-making power because that power is reserved to Congress. c. Agencies may exercise investigative, rule-making, and adjudicatory power. 2. Which of the following is true regarding an agency’s adjudicatory power? a. Agency administrative remedies...
Which of the statements below is TRUE? One problem with IRR as a decision rule is that if the cash flow is not standard, there is a possibility of multiple IRRs for a single project. When we talk about standard cash flow for a project, we assume an initial cash outflow at the beginning of the project and negative cash flows in the future. For every period that the cash flow has a change of sign (negative to positive or...
#7) Which of the following statements, if any, is or are true? As a general rule, income generated by property is not taxable to the person who owns the property if the income is paid to directly to another person who, prior to such payment, performed services with respect to the property. As a general rule, compensation with respect to the performance of services is taxable to the person who performed the services unless the compensation is assigned to and...
7) Which of the following statements is FALSE? A) The IRR investment rule will identify the correct decision in many, but not all, situations. B) By setting the NPV equal to zero and solving for r, we find the IRR. C) If you are unsure of your cost of capital estimate, it is important to determine how sensitive your analysis is to errors in this estimate. D) The simplest investment rule is the NPV investment rule. 8) Which of the...
Which ofthe following statements is true regarding net present value? A. NPV decreases as the required return on the project increases B. NPV decreases as the discount rate decreases C. NPV is unaffected by the timing of the project’s cash flows. D. NPV is equal to the initial investment when the required return is equal to the IRR
which of the following statements is true about bureaucracy?
Which of the following is true about the relationship between Net Present Value (NPV) and Internal Rate of Return (IRR): NPV calculates outflows and inflows over a period of time discounted based on a selected rate, unique to each developer. IRR represents the discount rate at which NPV = 0. IRR may be thought of as interest compounded backwards over a period of time. After our team development presentation, I never, ever want to hear about NPV or IRR again!...
Which of the following statements are correct about the decision rules for net present value (NPV) and Profitability Index (PT) A) They always result in the same decision O B) They may result in different decisions C) NPV is always greater than PH D) a and E) b and