If a project returns Exactly the required rate of return (x) then: 1. NPV will be...
If a project returns Exactly the required rate of return (x) then:
1. NPV will be ____.
2. PI will be _____.
3. IRR will be ____.
options:
x
0
1
Homework Answers
1.NPV will be 0.
2.PI will be 1.
3.IRR will be x.
At required rate of return NPV will be 0.
Profitability index will be 1.
IRR will be equal to required rate of return.
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If a project returns Exactly the required rate of return (x)
then:
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A project has positive NPV. The required return for the project is 15%. Which of the...
A project has positive NPV. The required return for the project is 15%. Which of the following statements is also descriptive (and meaningful) regarding the project? (More than one might be true) A. The project has positive IRR B. The project has positive PI. C. The project IRR > 15% D. The project has PI > 1 E. The project has a payback period that is less than the lifetime of the project. F. The project should be accepted.
Dropdown options first 2 blanks: (internal rate of return IRR, required rate of return, modified internal...
Dropdown options first 2 blanks: (internal rate of return IRR,
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Dropdown options 3rd blank: (NPV method, IRR method)
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c. If the required return is 7 percent, what is the NPV for Project A? ...
c. If the required return is 7 percent, what
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d. If the required return is 7 percent, what
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e. At what discount rate would the company be
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Bruin, Inc., has identified the following two mutually exclusive projects: Year -o Cash Flow (A) -$41,000 19,400 14,900 12,400 9,400 Cash Flow (B) -$41,000 5,600 12.100 18,600 22,600 mt a. What is the IRR...
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(NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B....
(NPV, PI, and IRR calculations) You are considering two independent projects, project A and project B. The initial cash outlay associated with project A is $50,000 and the initial cash outlay associated with project B is $70,000. The required rate of return on both projects is 11 percent. The expected annual free cash inflows from each project are on the table below. Calculate the NPV, PI, and IRR for each project and indicate if the project should be accepted. Project...
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8) Project A has an internal rate of return (IRR) of 15 percent. Project B has...
8) Project A has an internal rate of return (IRR) of 15 percent. Project B has an IRR of 14 percent. Both projects have a required retum of 12 percent. Which of the following statements is MOST correct? A) Project A must have a higher NPV than Project B. B) Both projects have a positive net present value (NPV) C) Project B has a higher profitability index than Project A. D) If the required return were less than 12 percent,...
Dropdown options first 2 blanks: (internal rate of return IRR,
required rate of return, modified internal rate of return MIRR)
Dropdown options 3rd blank: (NPV method, IRR method)
If projects are mutually exclusive, only one project can be chosen. The internal rate of return (IRR) and the net present value (NPV) methods will not always choose the same project. If the crossover rate on the NPV profile is below the horizontal axis, the methods will agree. always Projects Y and...
c. If the required return is 7 percent, what
is the NPV for Project A?
d. If the required return is 7 percent, what
is the NPV for Project B?
e. At what discount rate would the company be
indifferent between these two projects?
Bruin, Inc., has identified the following two mutually exclusive projects: Year -o Cash Flow (A) -$41,000 19,400 14,900 12,400 9,400 Cash Flow (B) -$41,000 5,600 12.100 18,600 22,600 mt a. What is the IRR...
(1 of 10) What is the NPV of this project if the required rate of return is 13%? Year Cash Flows -1,000,000 200,000 400,000 300,000 700,000 NO $127,487.98 $100,173.26 $155,845.71 $185,298.25 $73,852.65
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