Which of the above statements are correct?

Q: Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating…

A: Internal rate or return or IRR is the method of capital budgeting which is determined and compared…

Q: A project is accepted if, Net present value of the project is positive. IRR is lower than cost of…

A: Net Present Value method is used to ascertain whether the proposal should be selected or rejected…

Q: which of the following statement is true>? 1. return on equity is the ratio of total assets to…

A: Capital budgeting is a way to evaluate profitability of new projects or investment by using various…

Q: The general decision rule in Internal Rate of Return (IRR) is; Group of answer choices Accept…

A: solution concept If the IRR is greater than the cost of capital the project shall be accepted If the…

Q: nternal rate of return   For the project shown in the following​ table, calculate the internal rate…

A: IRR is rate at which net present value of the cash flows will be equal to 0 it is calculated using…

Q: Consider the relationship between a project’s net present value (NPV), its internal rate of return…

A:

Q: We should accept a project if the Net Present Value is positive and the Internal Rate of Return is…

A: Net present value is referred as the difference between the cash inflow's present value and also…

Q: Required (a) Calculate the following values for the investment proposal. (i) Net Present Value; (ii)…

A: Investment Appraisal Techniques: There are several techniques that are used to appraise investment…

Q: Suppose a company uses the NPV method, alongwith risk-adjusted WACCs, to calculate projectNPVs.…

A: Companies find NPV to know the present worth of the project and on that basis, they decide to go for…

Q: Which capital budgeting projects are ?preferred اخترأحد الخیارات a. Higher payback period O b. None…

A: Various decisions are required to be taken by the management before making any decisions related to…

Q: Which of the following statements is (are) true about project appraisal methods: (i) NPV is the…

A: (i) NPV is the best measure for project appraisal even when capital is rationed.   There is no such…

Q: If net present value for a project is negative, then____. a. IRR is equal to Cost of capital b. IRR…

A: Net present value is the difference between the present value of cashflows discounted at the cost of…

Q: pted when profitability index will be greater than one b. All statements are corre

A: Profitability index indicates present value of cash inflows as no. of times of present value of cash…

Q: This calculation determines profitability or growth potential of an investment, expressed as a…

A: Given: The expression of the growth potential of investment is given and to find out the point at…

Q: Consider the following statement: In a capital rationing problem withdivisible investments, if all…

A: Capital rationing is a technique used in capital budgeting to maximize profitability by restricting…

Q: The table below shows the internal rate of return (IRR%) for three investment projects A, B and C…

A: IRR  is the rate of discount at which the sum of discounted cash inflows equals the discounted cash…

Q: Which of the statements below describes the correct capital budgeting decision rule? O A. Reject a…

A: Capital Budgeting Capital budgeting refers to different techniques used to evaluate the project.…

Q: Whenever the present value of the project is greater than the initial cash outlay then both the NPV…

A: Net present value is present value of cash inflows less present value of outflows. PI i.e.…

Q: If the internal rate of return (IRR) is less than the cost of capital, then the investment is…

A: False If the internal rate of return (IRR) is less than the cost of capital, then the investment is…

Q: Help question 21

A: Rate of return is a profit of an investment over a specified period of time, expressed as…

Q: True or False: In solving a capital budgeting problem involving investment opportunities that are…

A: In solving a capital budgeting problem involving investment opportunities that are divisible (i.e.,…

Q: (c) Why is net present value considered to be a superior method of evaluating the cash flows from a…

A: The concepts of capital budgeting tools can be used here to answer the questions. There are…

Q: According to the profitability index criterion, a project is acceptable if its profitability index…

A: PI = Present value of future expected cash flows / Initial investment amount in the project.

Q: Which of the following statements is CORRECT? O a. The NPV profile graph for a normal project will…

A: The net present value method is an important technique of capital budgeting and the time value of…

Q: The method that measures a projects return based on present values is the: Internal Rate of Return…

A: The current value of an investment based on the return, which will be received on a predefined…

Q: Assuming that a project has already been evaluated using the following techniques, the evaluation…

A: There will be no effect on change in residual value of project, if the payback period is less than…

Q: If for a certain project the income of the development is received later than the costs are…

A: If for a certain project the income of the developement is received later than the cost are…

Q: You should accept a project when the ?: net present value is negative. profitability index is…

A: Honor code- Since you have asked multiple questions, we will solve only the first question for you.…

Q: If an investment project has a negative net present value (NPV), which one of the following…

A:

Q: Which of the following statements is CORRECT?

A: Net Present Value (NPV) Net Present Value method is a discounting cash flow technique used in…

Q: For a capital investment project to be acceptable, it must generate a rate of return  A) Less than…

A: The correct answer id Option (B).

Q: Which of the following statements Is false with respect to the simple rate of return? Multiple…

A: Formula: Simple rate of return = Average profits / Initial investment

Q: If the internal rate of return (IRR) of a well-behaved investment alternative is equal to MARR,…

A: MARR is the minimum return the management requires from a project after adjusting the risks and…

Q: Calculate internal Rate of Return of the project. Should the project be accepted? If reinvestment…

A: Internal rate of return is the rate at which the present value of cash inflows are equal to present…

Q: If a capital project has a hurdle rate higher than its internal rate, then its profitability index…

A: Solution Explanation- A hurdle rate is the minimum rate of return required on a project or…

Q: The relationship between NPV and IRR is such that a. both approaches always provide the same ranking…

A: IRR is the required rate of return for the project to have zero Net Present value.   Net present…

Q: A project is accepted if, I) II) III) Net present value of the project is positive. IRR is lower…

A: Capital budgeting is referred as the process of decision making which is used by companies to…

Q: If the net present value of a proposed investment is negative, what is the discount rate used? Less…

A: Net present value (NPV) is the significant present value difference between cash outflows and cash…

Q: The profitability index O will never be greater than 1. O does not take into account the discounted…

A: The profitability index helps to compare the project. It measure the attractiveness of the project.…

Q: The ARR has one specific advantage not possessed by the payback period in that it a.considers the…

A: Definition:

Q: Examine the following statements. (i) Payback period method measure the true profitability of a…

A: Time value of money is a concept that helps in determining the value of future cash flows…

Q: rojects. The ihta Tal fates of return are as folloWS: Internal Rate Project of Return 11 12% 15 13…

A: IRR is the rate at which Present value of cash Inflows is equal to Present Value of cash Outflows.…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.