Which of the following statements is correct regarding the payback method? Takes account of differences in size among projects.   If a project’s payback is positive, then the project should be accepted because it must have a zero NPV.   Ignores cash flows beyond the payback period.   Has an objective, market-determined benchmark for making decisions.   Directly account for the time value of money.

Q: Breakeven cash inflow refers to ________.   the minimum level of cash inflow necessary for a…

A: Net present value is one of the discounted techniques of capital budgeting which is used to measure…

Q: If a project has a higher proportion of fixed to variable costs, holding the risk of its revenues…

A: A project consists of fixed as well as variable costs. Fixed costs remain fixed all the time,…

Q: How can we use the internal rate of return to evaluate whether we should pursue a specific project?…

A: It is important for the investors to evaluate the project in all aspects before making any…

Q: Which of the following cash flows should not be considered when evaluating a project? Changes in…

A: Following cashflows should not be considered when evaluating a project-

Q: Is it worth the effort to estimate daily project cash flows?  Would doing so be helpful in the…

A: Cashflows are usually estimating yearly and then discounted at an appropriate discount rate

Q: Assume a project has normal cash flows. All else equal, which of the following statements is…

A: The correct answer is option (e).   The weighted average cost of capital includes the cost of…

Q: ve determined the profitability of a planned project by finding the present value of all the cash…

A: Present value of cash flow is related to the discount rate and the period of cash flow of the…

Q: Pls help with below homework.

A: Payback period refers to the amount of time it takes for a business or firm to recover the initial…

Q: What will happen to the internal rate of return (IRR) of a project if the discount rate is decreased…

A: IRR is the rate where the NPV of the project is ZERO

Q: The general rule for using the weighted-average cost of capital (WACC) in capital budgeting…

A: WACC is the Weighted Average Cost of Capital of a company. A company's capital consists of debt and…

Q: If a net present value analysis for a normal project gives an NPV greater than zero, an internal…

A: NPV greater than 0

Q: It is good to compute first the additional benefits that a project can give and the additional cost…

A: Meaning of the given options:: a) Law of supply and demand- The law of demand states that when price…

Q: Which of the following statements is CORRECT? O Projects with "normal" cash flows can have two or…

A:

Q: Which of the following is not a capital budgeting technique? Select one: a. Net present value b.…

A: Capital budgeting: Capital budgeting is the technique used for analyzing the investment in long term…

Q: Which of the following is NOT a disadvantage of the Payback Period project evaluation method?…

A: Payback period is the number of years required to get back the initial investment made in a capital…

Q: Yonan Inc. is considering Projects S and L, whose cash flows are shown below. These projects are…

A: Net present value is the difference between the present value of cash inflows and present value of…

Q: Which of the following statements is correct? - NPV method is the only method firms should use to…

A: Mutually exclusive projects Mutually exclusive projects are projects that are in direct competition…

Q: When the present value of the cash inflows exceeds the initial cost of a project, then the project…

A: If present value of cash inflows exceeds the initial cost of a project, then NPV of the project will…

Q: Which of the following is correct?

A: The payback period is the time duration taken to reap back the amount invested in the project. The…

Q: The internal rate of return is the: discount rate that makes present value of cash inflows equal to…

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Which of the following would cause a project to have a lower net present value, thereby making the…

A: Capital budgeting techniques include: Net Present Value Profitability Index Internal Rate of Return…

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: Define each of the following investment rules and discuss any potential shortcomings of each. In…

A: Introduction: Capital budgeting is an investment criterion or decision making mechanism for…

Q: A unique feature of the analysis of a replacement decision is that Group of answer choices a. the…

A: The question is related replacement problem and the problem is of Capital Budgeting. In replacement…

Q: The AW of a project can be estimated by reducing all cash flows including the capital investment,…

A: Annual worth is the equivalent annual value for the cash flows for the given investment project.

Q: One of the benefit of the pay back period is that it focuses on the timing of the project`s benefits…

A: Payback period is a time taken to recover initial investment

Q: Discuss the following statement: If a firm has only independent projects, a constant WACC,and…

A: Answer: The statement given is true because of the following reasons, Since independent projects…

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: Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: Internal Rate-of-Return is discount rate that makes NPV(Net Present Value) zero for an investment…

Q: Which statemen is true?   A.   IRR and NPV always lead to the same decision about projects.…

A: A. IRR and NPV always lead to the same decision about projects.- False (Reason- When comparing two…

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: ) IRR may produce multiple rates of return when cash flows are non-conventional. B) IRR is best used…

A: Internal Rate of Return(IRR) is a financial metric for cash flow analysis that compares investments…

Q: Which of the following statements is most correct? If a project’s internal rate of return (IRR)…

A: IRR or Internal Rate or Return is discount rate that discounts Net Present Value(NPV) of any…

Q: 3. Which of the following statements is CORRECT? Assume that the project being considered has normal…

A: Financial Management: Financial management comprises of two words i.e. Finance and management.…

Q: Which of the following statements is (or are) true? (Select all correct responses.] O For a…

A: Correct statements are; 1)  2) 4) 5)

Q: O The NPV and IRR methods, when used to evaluate two independent and equally risky projects, will…

A: The discounted technique of net present value (NPV) is used to assess the effectiveness of a…

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

A: Definition:

Q: a. If your decision rule is to accept the project with the greater IRR, which project should you…

A: Net present value  is the difference between the present value of cash inflows and the present value…

Q: Which of the following is a disadvantage of the IRR project evaluation method? Select one: a. It…

A: IRR is the rate at which NPV is zero.

Q: disadvantage of using the accounting rate of return to evaluate investment alternatives is that…

A: Accounting rate of return (ARR) is a way of comparing profits that a business or a project is…