Which of the following would cause a project to have a lower net present value, thereby making the project less appealing?         A. The discount rate increases       B. The cash flows are extended over a longer period of time.       C. The investment cost decreases without affecting the expected income and life of the project.       d. The cash flows are accelerated and the project life is correspondingly shortened.

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: 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: 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: Why would the average rate of return differ from the internal rate of return on the same project

A:

Q: Which of the following is CORRECT? Select one: a. If the NPV of a project is negative, the IRR for…

A: NPV is a technique that helps the company to analyze the viability of the project i.e. the company…

Q: ther things held constant, which of the following would increase the NPV of a project being…

A: NPV = PV of cashflows - Initial Investment

Q: Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What…

A: Year 0 cashflow (CF0) = - $1000 CF1 = $450 CF2 = $450 CF3 = $450 r = 10% n = 3 years

Q: a) the payback period is how many years? b) the project meets/does not eat the benchmark?

A: Discounted payback period (DPP) refers to a period within which the sum invested by the investor or…

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: When the net present value of a project is equal to zero, the project is operating at the   Group of…

A: Net present value (NPV) is the distinction between the PV of money inflows over some stretch of time…

Q: There Is no correlation between net present value and Internal rate of return. A project with a…

A: Net present value that is NPV difference between present value of cash flow and initial investment.…

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: 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: Why is the original cost estimate corrected based on buyout data?

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: If the project’s weighted average cost of capital (WACC) is 7%, what is its NPV? a.)$340,887…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

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 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: 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: If the net present value of a project is positive, the project earns a return that is Group of…

A: Introduction: According to the net present value rule, executives and shareholders must only invest…

Q: When comparing two projects with different lives, why do you compute an annuity with an equivalent…

A: When life of two mutually exclusive projects are different than NPV method does not give…

Q: Help question 21

A: NPV = $ 300

Q: Help question 21

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

Q: What are the shortcomings of the internal rate of return criterion? How do you make an investment…

A: Internal rate of return is the discount rate at which the present value of the future cash flow and…

Q: Which of the following statements is CORRECT?   a.  An NPV profile graph shows how a project's…

A: NPV discount firm's cash flow at firm's cost of capital. NPV profile graph shows relation…

Q: calculates that a project with conventional cash flows and a required return of 14% has a negative…

A: Internal rate of return when net present value is zero that means present value of cash flow is…

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: 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: Explain why the NPV of a relatively long-term project, defined as one for whicha high percentage of…

A: NPV of a project is determined as below: NPV=PV of Cash Inflows -Initial OutlayPV of Cash…

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: 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: Comment on the following statement. The reason we are seeing fewer market-creating innovations is…

A: The process by which a company evaluates potential big projects or investments is known as capital…

Q: Indicate whether its True or False. Then write the explanation!   The twin advantages with using…

A: Capital budgeting techniques are used to determine whether the investment should be undertaken or…

Q: The project is accepted اخترأحد الخيارات a. If the profitability index is zero b. if the…

A: Since, you asked multiple questions, we will answer first question for you as per guideline. Kindly…

Q: span of time within which the investment made for the project will be recovered by the net returns…

A: Payback period is the no. of years required to recover the initial amount invested.

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: 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: If a low cash flow this year makes a low cash flow next year more likely to occur, this means the…

A: The question is related to the Cash flows pattern. Corrected means in which one thing affects or…

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

A: Definition:

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…

Q: O One can use the IRR rule for investment decision making without knowing the discount rate O The…

A: Question 2:   The concerned question belongs to Time value of money where different methoda are used…

Q: Below are some statements about risk and investment appraisal. Which one is incorrect? A.…

A: risk increase with the length of a project.

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.