[5] The internal rate of return (IRR) is the A. Hurdle rate. B. Rate of interest for which the net present value is greater than 1.0. C. Rate of interest for which the net present value is equal to zero. D. Accounting rate of return.
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![[5] The internal rate of return (IRR) is the
A. Hurdle rate.
B. Rate of interest for which the net present value is greater than 1.0.
C. Rate of interest for which the net present value is equal to zero.
D. Accounting rate of return.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F938b1266-8925-4eee-89e4-830667bf2ee4%2F52707a7d-9d64-4035-b09c-123c18d896db%2F79xhqi_processed.png&w=3840&q=75)
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- Which of the following statements is true?a. When the interest rate increases, the present value of asingle amount decreases.b. When the number of interest periods increases, thepresent value of a single amount increases.c. When the interest rate increases, the present value of anannuity increases.d. None of the above are true.which one is correct please confirm? QUESTION 8 The effective rate of interest will always be ____ the nominal rate. a. less than b. equal to c. equal to or greater than d. greater than__________ is the interest rate that makes NPV equal to zero when it is used as the discount rate.
- Present using the rate of return method without using the NPV. Rate of interest = 10%Question 12 Which of the following methods does not adjust for the time value of money: A internal rate of return B net present value C profitability index D payback period16. Which of the following statements is true? Select one: a. The nominal interest rate is always greater than the effective interest rate b. The effective interest rate always equals the nominal interest rate c. The effective interest rate is always greater than or equal to the nominal interest rate d. The effective interest rate is always less than or equal to the nominal interest rate
- The discount rate used in a net present value analysis is the ________. A. rate of interest earned on a savings account B. rate of inflation C. rate of interest charged for debt financing of an investment D. required rate of return or the hurdle rate6. What is the difference between yield to maturity on outstanding debt and coupon rate? Which is a better measure of cost of debt between the two? 7. How is COST OF preferred equity computed?Question No. 3: What is financial market equilibrium? And then explain its relation to required rate of return.
- 4. Explain or illustrate before-tax cost of debt and after-tax cost of debt. 5. What are the relationships between: a) interest rate and cost of debt; b) default risk and cost of debt; and c) bond rates and interest rates? 6. What is the difference between yield to maturity on outstanding debt and coupon rate? Which is a better measure of cost of debt between the two? 7. How is COST OF preferred equity computed?QUESTION 15 Which of the following is a correct interpretation of r = i - pi? Nominal interest rate is real interest rate adjusted for inflation. Real interest rate is inflation adjusted for nominal interest rate. Inflation is real interest rate adjusted for nominal interest rate. Negative real interest rate is possible. Negative real interest rate is favorable to the lenders.which one is correct please confirm? QUESTION 27 The term structure of interest rates is related to the ____ risk premium. a. seniority b. marketability c. default d. maturity
