he project is accepted Select one: a. None of the option b. If the profitability index is negative c. If the profitability index is zero d. If the profitability index is greater than one e. if the profitability index is less than one
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- Which of the following is a true statement regarding the future worth of a single investment alternative? (a) It will be equal to both the present worth and the annual worth if the same discounting interest rate is used. (b) Choose to invest if the calculated amount is less than zero at the investment rate of return. (c) It will yield a recommendation consistent with the present worth and annual worth methods if the same discounting interest rate is used.(d) It cannot be used to evaluate single investment alternatives.If the internal rate of return (IRR) of a well-behaved investment alternative is equal to MARR, which of the following statements about the other measures of worth for this alternative must be true? i. PW = 0 ii. AW = 0. Solve, a. I onlyb. II only c. Neither I nor II d. Both I and II.The profit (loss) experienced on option B is $ ? (Round to the nearest dollar. Enter a negative number for loss.) The profit (loss) experienced on option C is $ ? (Round to the nearest dollar. Enter a negative number for loss.) The profit (loss) experienced on option D is $ ? (Round to the nearest dollar. Enter a negative number for loss.) The profit (loss) experienced on option E is $ ? (Round to the nearest dollar. Enter a negative number for loss.) How do I find the calculations for these questions?
- Identify the one true statement. a. The B/C method determines the ratio of the present worth of benefits to the negative of the future worth of the investments. b. The CW method determines the present worth using a finite planning horizon. c. The IRR method determines the interest rate that yields a future worth of zero. d. The ERR method determines the interest rate that yields a present worth of zero.True or False. and briefly explain. a. Under the Capital Asset Pricing Model (CAPM), if a stock has a zero beta, then it must be identical to the riskfree asset. b. For Value at Risk (VaR) to be useful, the returns have to be normally distributed. c.If the borrowing rate is higher than the lending rate, a particular risk-averse investor can achieve a maximized utility score of UC* by choosing optimally. Now if the borrowing rate is equal to the lending rate, this investor must be able to achieve a utility score higher than UC*The project is accepted اخترأحد الخيارات a. If the profitability index is zero b. if the profitability index is less than one c. If the profitability index is greater than hundred d. If the profitability index is negative e. None of the option What is the limitation of Traditional approach of Financial Management? اخترأحد الخيارات a. All of the option b. More emphasis on long term problems c. Ignores allocation of resources d. One-sided approach
- When using present worth to evaluate the attractiveness of a single investment alternative, what value is the calculated PW compared to? a. 0.0b. MARR c. 1.0 d. WACC.e. IMPORTANT Note that from this example that a higher IRR for a nindividual alternative does not gurantee that the alternatvie is more economical than the one with a lower IRR. It is the incremental IRR value relative to the MARR that determines which alternative is more economical. The result of the incremental analysis are always the same as those of the PW,AW, or FW anaylsisWhen comparing two mutually exclusive alternatives by the ROR method, if the rate of return on the alternative with the higher first cost is less than that of the lower first-cost alternative: (a) The rate of return on the increment between the two is greater than the rate of return for the lower first-cost alternative (b) The rate of return on the increment is less than the rate of return for the lower first-cost alternative (c) The higher first-cost alternative may be the better of the two alternatives (d) The lower first-cost alternative should be selected
- Which of the following is true with Money Market? Select one: a. Attracts long term investor and borrower b. None of the options c. Deals with old stocks issued by companies d. Needs fixed place for trading e. Provides long term instruments which are already issued by companies The project is accepted Select one: a. If the profitability index is negative b. None of the option c. if the profitability index is less than one d. If the profitability index is greater than hundred e. If the profitability index is zeroAn investor is consider four different opportunities, A, B, C, or D. The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic Condition Investment Poor Average Good Excellent (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100 300 -50 10 D 25 25 25 25 What decision would be made under minimax regret?Which of the following is a disadvantage of the internal rate of return criterion? Select one: a. It is not a true rate of return. b. It uses an arbitrary benchmark cutoff rate. c. It ignores time value of money, cash flows, and market values. d. It cannot be used to rank independent projects. e. It may lead to incorrect decisions when comparing mutually exclusive investments.