Fundamentals of Corporate Finance, Student Value Edition (4th Edition)
Fundamentals of Corporate Finance, Student Value Edition (4th Edition)
4th Edition
ISBN: 9780134476117
Author: Berk, Jonathan; DeMarzo, Peter; Harford, Jarrad
Publisher: PEARSON
Question
Book Icon
Chapter 8, Problem 8CT
Summary Introduction

Internal Rate of return: Internal rate of return is that rate at which the present value of cash inflows is similar to the present value of cash outflows and resulted net present value became zero.

Net Present Value Fundamentals of Corporate Finance, Student Value Edition (4th Edition), Chapter 8, Problem 8CT , additional homework tip  1 Net present value refers the variance between the present value of cash flows and the present value of cash outflows.

Mutually exclusive projects: Mutually exclusive projects are the project for which the acceptance of one project leads to rejection of another one and to make the difference between these projects is difficult, as both the projects compete for each other.

To Explain: To take the Fundamentals of Corporate Finance, Student Value Edition (4th Edition), Chapter 8, Problem 8CT , additional homework tip  2 as a base to choose between the mutually exclusive projects is a bad idea.

Blurred answer
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education