The point where a project produces a rate of return equal to the required return is known as the:
A) present value break-even point.
B) accounting break-even point.
C) point of zero profit.
D) internal break-even point.
E) income break-even point.
A) present value break-even point.
The point where a project produces a rate of return equal to the required return is known as the present value break-even point.
The point where a project produces a rate of return equal to the required return is...
If an investment project has an internal rate of return equal to the required rate of return, the NPV for the project: A. may be either positive or negative B. is positive C. cannot be determined D. is zero E. is negative
The internal rate of return is defined as the: A. discount rate that causes the profitability index for a project to equal zero. B. discount rate which equates the net present value of cash inflows to the net present value of cash outflows to zero. C. maximum rate of return a firm expects to earn on a project. D. rate of return a project will generate if the project in financed solely with internal funds.
If the net present value of a project is zero, the project is earning a return equal to: Multple Choice Zero The rate of Inflation. The accounting rate of return. The required rate of return.
18. Which of the following is NOT true about the internal rate of return: A) A good project is one with IRR greater than the required return. B) IRR is the discount rate that results in a zero net present value for the project. C) Crossover rate for two projects is the IRR of the project with the difference of the cash flows of the two projects.. D) For two projects of the same size, IRR will usually choose the...
The internal rate of return is defined as the: O Discount rate that causes the profitability index for a project to equal zero. O Rate of return a project will generate if the project in financed solely with internal funds. O Discount rate that equates the net cash inflows of a project to zero. O Maximum rate of return a firm expects to earn on a project. O Discount rate which causes the net present value of a project to...
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,...
Which of the following comes closest to the internal rate of return (IRR) of a project that requires an initial investment of $100 and produces a single cash flow of $160 at the end of year 11? The required rate of return for the project is 13%. a. 5.36% b. 4.81 % C. 3.99% d. 4.37% e. 6.05% Oc.
An independent project should be accepted if it produces a net present value that is less than zero. has an IRR greater than the required rate of return. has an IRR greater than zero. produces a profitability index greater than or equal to zero.
Which one of the following indicates that a project is definitely acceptable? A. Profitability index greater than 1.0 B. Negative net present value C. Modified internal rate return that is lower than the requirement D. Zero internal rate of return E. Positive average accounting return
48. The internal rate of return of an investment is: A. the same as return on investment. B. zero when the present value of an investment equals its cost. C. the interest rate that equates the present value of an investment with its cost D. equal to the market rate of interest when an investment is made