Which of the following statements is most correct? a. The IRR method is correct under all...
Which of the following statements is most correct?
a. The IRR method is correct under all circumstances when comparing mutually exclusive projects.
b. The discounted payback method solves all the problems associated with the payback method.
c. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method.
d. All of the statements above are correct.
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Which of the following statements is most correct? a. The IRR method is correct under all...
Which of the following statements is most correct? a. The IRR method is correct under all...
Which of the following statements is most correct? a. The IRR method is correct under all circumstances when comparing mutually exclusive projects. b. The discounted payback method solves all the problems associated with the payback method. c. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method. d. All of the statements above are correct.
Which of the following statements is INCORRECT? Select one: a. For independent projects, the decision to...
Which of the following statements is INCORRECT? Select one: a. For independent projects, the decision to accept or reject will always be the same using either the MIRR method or the NPV method. b. The IRR method is appealing to some managers because it produces a rate of return upon which to base decisions rather than a dollar amount like the NPV method. c. One of the disadvantages of choosing between mutually exclusive projects on the basis of discounted payback...
Which of the following statements is CORRECT? One reason some people prefer the MIRR to the...
Which of the following statements is CORRECT? One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on a generally more reasonable reinvestment rate assumption. A project’s MIRR can never exceed its IRR. When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated. Both the regular and the modified IRR...
This might be wrong. I need a help for correct answer. Thank you. QUESTION 14 Which...
This might be wrong. I need a help for correct answer. Thank
you.
QUESTION 14 Which of the following statements is true? We can use NPV to evaluate two mutually exclusive repeated projects. To make an investment decision based on IRR, we do not need to know the appropriate discount rate. We can use profitability index to evaluate mutually exclusive project. For a given project, NPV and Discounted Payback Period will reach the same decision if the targeted time is...
Which of the following statements is CORRECT? A) The NPV method is regarded by most academics...
Which of the following statements is CORRECT? A) The NPV method is regarded by most academics as being the best indicator of a project's profitability, hence most academics recommend that firms use only this one method and disregard other methods. B) The NPV method was once the favorite of academics and business executives, but today most authorities regard the MIRR as being the best indicator of a project's profitability. C) A project's NPV depends on the total amount of cash...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...
Which of the following statements is CORRECT? The internal rate of return method (IRR) is generally...
Which of the following statements is CORRECT? The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The net present value method (NPV) is generally regarded by academics...
Which of the following is true about comparing NPV and IRR rule? (a) NPV is strictly...
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...
Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment...
Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the reinvestment rate assumption...
7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often...
7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...
This might be wrong. I need a help for correct answer. Thank
you.
QUESTION 14 Which of the following statements is true? We can use NPV to evaluate two mutually exclusive repeated projects. To make an investment decision based on IRR, we do not need to know the appropriate discount rate. We can use profitability index to evaluate mutually exclusive project. For a given project, NPV and Discounted Payback Period will reach the same decision if the targeted time is...
Which of the following statements is CORRECT? A) The NPV method is regarded by most academics as being the best indicator of a project's profitability, hence most academics recommend that firms use only this one method and disregard other methods. B) The NPV method was once the favorite of academics and business executives, but today most authorities regard the MIRR as being the best indicator of a project's profitability. C) A project's NPV depends on the total amount of cash...
The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the...
Which of the following statements is CORRECT? The internal rate of return method (IRR) is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The discounted payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The payback method is generally regarded by academics as being the best single method for evaluating capital budgeting projects. The net present value method (NPV) is generally regarded by academics...
Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that apply. For most firms, the reinvestment rate assumption...
7. Conclusions about capital budgeting The decision process Before making capital budgeting decisions, finance professionals often generate, review, analyze, select, and implement long-term investment proposals that meet firm-specific criteria and are consistent with the firm's strategic goals. Companies often use several methods to evaluate the project's cash flows and each of them has its benefits and disadvantages. Based on your understanding of the capital budgeting evaluation methods, which of the following conclusions about capital budgeting are valid? Check all that...
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