When you have more than two mutually exclusive alternatives, how can they be compared in pairs?

Q: What qualifies as a like-kind exchange?

A: Definition: Property, plant, and equipment: These assets are long lived economic resources which are…

Q: True or False If several independent projects are considered, the one(s) with the highest PIs…

A: If several independent projects are considered, the one(s) with the highest PIs should be chosen...…

Q: The like-kind exchange rules are elective. True or false

A: Like kind exchange is when money from selling one assets is invested in similar types of assets than…

Q: Which of the following statements about the relationship between the IRR and the MIRR is correct? A…

A: The IRR is the investment discount rate that corresponds to the difference between the original…

Q: What is the Incremental PI Ratio Analysis for Mutually Exclusive Alternatives?

A: The profitability index (PI), then again alluded to as the value investment ratio (VIR) or profit…

Q: Which method is more efficient to obtain an equivalence?

A: Answer: The concept of equivalence tends to compare the cash flows in such a way that two…

Q: Describe the method for conducting sensitivity analysis for mutually exclusive alternatives?

A: Sensitivity analysis is a financial model that decides how target factors are influenced by changes…

Q: Replacement projects are a subcategory of the mutually exclusive projects. True or false?

A: Replacement project:  A replacement project is an undertaking in which the corporation rejects a…

Q: Trade off Theory states that:

A: The capital structure of a company can be defined as the proportion of debt and equity used by a…

Q: Describe the Sensitivity Analysis method performed for Mutually Exclusive Alternatives?

A: Sensitivity analysis is a financial model that decides how target factors are influenced by changes…

Q: If projecst are independent, you can choose ________ project(s). If projects are mutually exclusive,…

A: Correct answer is (a) More than 1 ; only 1.

Q: Whta is the advantages and disadvantages of Wakala – Mudharabah (Hybrid) Model in takaful?

A: Wakala: Wakala is an agency contract in which the account holder (principal) hires an Islamic…

Q: Do you think the Ricardian Equivalence is realistic?

A: Ricardian equivalence theory : In simple words, Ricardian equivalence can be understood as an…

Q: How will you choose between two mutually exclusive projects which do differs in terms of their…

A: An investment appraisal is a capital budgeting technique that helps to analyze a proposed project's…

Q: What is the intuition behind multiples or comparables valuation? What are the advantages of this…

A: Answer : What is the intuition behind multiples or comparable valuation? The intuition behind…

Q: Which method is a more efficient way to obtain an equivalence?

A: Equivalence helps to equate the cash flows in such a manner that two cash flows occurring at…

Q: Which method would be more consistent with the matching principle? Why?

A: Definition:

Q: What are two advantages of ADR? List and provide an example for each.

A: ADR refers to the American Depositary Receipt. ADR is a negotiable certificate which represents a…

Q: Solve the problem. Which fairness criterion is always satisfied by the plurality with elimination…

A: The majority criteria is always satisfied by the plurality with the elimination method.. Since the…

Q: What is crossover rate and why is it important when evaluating two projects?

A: The process through which a company evaluates possible big projects or investments is called capital…

Q: What is mutually exclusive projects?

A: Mutually exclusive projects are capital projects which engage directly with each other. It differs…

Q: What is a three-way match? Give an example?

A: Three-way Match: The verification of the purchase transaction by the accounts payable department is…

Q: Explain the difference between independent and mutually exclusive projects?with examples..

A: Independent Project Independent project means the execution of the project with its cash flow will…

Q: What is the difference between “independent” and “mutuallyexclusive” projects?

A: Projects are categorized in capital budgeting as independent or as mutually exclusive. If a…

Q: Describe the procedure used for Incremental Analysis for Comparing Mutually Exclusive Alternatives?

A: Mutually exclusive alternatives are those alternatives in which only one alternative can be selected…

Q: Which of the following statements is correct? a. When there are two mutually exclusive projects, th

A: All of the following are incorrect: The payback period criterion properly considers the time value…

Q: Give an example of a Sensitivity Analysis performed for Mutually Exclusive Alternatives?

A: Mutually exclusive alternatives are those alternatives out of which only one can be selected at a…

Q: How can we generalize the decision rule for comparing mutually exclusive projects?

A: A company can only select only one project from various projects because it requires huge capital…

Q: Explain the process of Equivalence Calculations with Continuous Compounding?

A: Equivalence calculation is that calculation which gives the fix return surety in future in any…

Q: Do equivalence calculations require a common time basis for comparison?

A: Answer: The calculation of equivalence method is used where duration of the projects is not equal.…

Q: Firm A and Firm B have the same ROA, yet Firm A’s ROE is higher. How can you explain this?

A: ROA stands for return on assets and ROE stands for return on equity. If Firm A and Firm B have the…

Q: what is the reconciling DIFFERENCE:

A: A bank reconciliation statement has been prepared to reconcile the balance as per pass book and…

Q: This is a multiple choice question.

A: There are annual cash flow from projects all discounting method uses all cash flow generally.

Q: Explain the difference between independent and mutually exclusive projects?

A: Under capital budgeting, there are 2 types of projects selection basis: 1. When projects are…

Q: Describe two ways to reduce a complex ABC system of the two ways which has the most merit?

A: Activity based product costing (ABC) : ABC is a costing method in which it initially allocates costs…

Q: What is hostile merger?

A: Introduction: The merger is described as the mechanism by which one corporate entity merges its…

Q: Describe the evaluation techniques to consider multiple projects that are mutually exclusive?

A: Following are the evaluation techniques to consider multiple projects that are mutually exclusive:…

Q: Suppose that Mr Plutus has been asked to choose between various pairs of strategies and he responds…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Preference Share is a hybrid instrument’. Explain it with the the help of its features

A: A Hybrid instrument is a financial instrument which links the features of both the equity instrument…

Q: Give two examples or scenario of constructive/implied acceptance.

A: Constructive/Implied acceptance is the one that is not directly stated but is demonstrated by the…

Q: Competitive and Negotiated Offers - What are the comparative advantages of a competitive offer and a…

A: A competitive used to offer the situation, which use to exist the at the time of the department for…

Q: If these projects were independent, which project(s) would be accepted? Why? If these projects were…

A: We use different capital budgeting tools to determine the financial feasibility of projects that are…

Q: Give examples of the Equal Payment Series?

A: The goal of this method of investment is to determine the present value of an equivalent payment…

Q: mutually exclusive alternatives, determine the value "X" for the two alternatives to be equally…

A: Mutually Exclusive projects are projects that can not occur together. That is, happening of one…