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- which of the following statement is true>? 1. return on equity is the ratio of total assets to total net income 2. one must know the discount rate to compute the npv of a project but one can compute the IRR without referring to the discount rate. 3. there will always be one IRR regardless of cash flows 4. one must know the discount rate to compute the IRR of a project but one can compute the NPV without referring to the discount rate 5. payback accounts for time value of moneyTwo projects represented by the following two cash flow diagrams are considered to be financially equivalent based on an implied MARR. Determine this MARR. 51 H A AThis method solves for the interest rate that equates the equivalent worth of a project's cash outflows (expenditures) to the equivalent worth of cash inflows (receipts or savings). O A. Payback Period O B. Profitability Index O C. Rate of Return O D. MARR
- C So, the cash flows of the project under this quantity assumption are: Time 0 1 2 3 4 5 The NPV under this assumption is: NPV=- ANPV/AQ=What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment? Select one: a. Return of investment b. Yield c. Rate of return d. Economic return25...The Modified IRR method is a. Exactly the same as the IRR. b. A better measure than the NPV. c. The discount rate that causes the present value of a project's terminal value to equal the present value of the costs. The terminal value is found by compounding the cash inflows at the Weighted Average Cost of Capital. Cash flows are reinvested at the Weighted Average Cost of Capital. d. A less realistic measure than the standard IRR.
- A project is accepted if, I) II) III) IV) V) Net present value of the project is positive. IRR is lower than cost of capital. Modified internal rate of return is greater than cost of capital. Profitability index is greater than 1. Payback period is lower than the acceptable payback period. Which of the above statements are correct? А. I, I and II. B. I and IV С. I, II, IV, and V D. All of the above. ------Please answer the following questions 1. _________________ is the discounted net future cash inflows divided by the initial cash outlay. a.Payback b.NRV c.Profitability Index d.IRR 2. __________________________ serves as a framework for measuring performance. a.NRV b.Payback c.Profitability Index d.Balanced Scorecard 3. Which of the following is a performance measures of the balanced scorecard: a.internal Business perspective b.all of the answers are correct c.financial Perspective d.customer perspectiveFor a project that has an initial cash outflow followed by cash inflows, the profitability index (PI) is equal to the present value of cash inflows divided by the cost of capital. True kalse
- The net present value is ... O A. The return which is required for an investment O B. The current worth of a future stream of cash O C. The length of time it takes to recover the initial investment of a project O D. The sum of a time series of discounted cash inflows and outflowsThe down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 N 1 2 3 4 5,000 -4,000 8,000 Sale 4 $65,000 Savings Rate is: 1.5% and Loan Rate is 8%A rate of return is... O A. the return which is required for an investment O B. the current worth of a future stream of cash O C. the length of time it takes to recover the initial investment of a project O D. the sum of a time series of discounted cash inflows and outflows