Florida International University • FIN 3414, Questions on SS11_Reading 37_Cost of capital(2)(3).pptx, University of Arkansas, Fayetteville • FINN 3013. A) Gauss's law expresses the relationship between electric charge and electric field. will be positive if the IRR is less than the cost of capital. Which one of the following statements is true? Start studying Finance and Accounting Quiz 6. Which of the following statement is incorrect regarding angiosperms? Based on its risk, the project was judged to have a cost of capital of 13 percent. The greater the interest rate, the greater the present value, given the future value and the time period constant b. The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be. One simply has to. c. The discount factor is the reciprocal of the compound factor d. The longer the time period, the smaller the present value, given the future value and the interest rate constant. When managers are continually short-term borrowers they are said to follow a: Select one: a. permanent working-capital strategy o b. middle-of-the-road financing strategy c. restrictive financing strategy d. relaxed financing strategy b. NPV and IRR yield the same ranking when evaluating projects. Evaporation is a type of vaporization which occurs on the surface of the liquid. Terms Get the detailed answer: Which of the following statement about mass spectroscopy is incorrect? NPV = $280,913. When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated. 2.A lower IRR can be better if a cash inflow is followed by cash outflows 3.With mutually exclusive projects, IRR leadto incorrect investment descisions 4.IRR calculation assumes cash flows are reinvested at the IRR. Which of the following statement is incorrect? | Discounted payback period is less than the cut-off period. (a) What is a group in the periodic table? Which of the following statement is incorrect about atypical antipsychotic drugs- A. I. The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital. & A typical firm's IRR will be greater than its MIRR. b. (c) Direction of tangent at any point on the It will then cost $170,000 to close down the mine over the following year. Q3: Which of the following statements about NPV and IRR is least accurate? (b) Magnetic field line do not interest each other. Which of the following statements about IRR and NPV is incorrect? Multiple Choice A project… Social Science A. Exam 1.2 - Q1 Which of the following statements about NPV and IRR is least accurate will be positive if the IRR is less than the cost of capital C The, 13 out of 13 people found this document helpful. This preview shows page 1 - 3 out of 6 pages. The lone pair and two I–O double bond occupy the equatorial position of trigonal bipyramidal It has sp3d hybridisation and T-shaped Its structure is Dec 24,2020 - Which of the following statement is INCORRECT about a website?a)It is a collection of related webpages.b)It provides web pages containing images, videos or audio under a common web address.c)The information Assume a cost of capital of 10 percent and the following cash flow schedule: Year 1: $3,000 Year 2: $2,000 Year 3: $2,000 Determine the project's NPV and IRR. Learn vocabulary, terms, and more with flashcards, games, and other study tools. a. Which Of The Following Statements About IRR And NPV Is Incorrect? b. NPV and IRR yield the … In order to determine the net present value of the investment, given the required rate of, return; we can discount each cash flow to its present value, sum the present value, and subtract. View sample question 2.pdf from BIOL 133 at University of British Columbia, Okanagan. During the presentation, the CFO indicated that the project had an NPV of $786,339 and an IRR of 17.3 percent. They causes fewer side effects B. C) $64,582. a. not occur until the following year. * 1)The direction of magnetic field at a point is taken to be the direction in which the north pole of a magnetic compass needle points. Q2: Which of the following statements is least accurate? next seven years. Next, the year of each cash flow must be property identified; specifically: CF0 = $0; CF1 = -430,000; CF2-8 = +$200,000; CF9 = -$170,000. The discounted payback period:B) Is, generally shorter than the regular payback, The discounted payback is longer than the regular payback because cash flows are discounted. If IRR is less than the cost of capital, the result will be a negative NPV. Cosmid contains gene coding for viral protein Cosmid replicates like plasmids Cosmid has antibiotic resistant marker gene Cosmid has 12 bases helping to join complete genome to C. A project may have multiple IRRs when the sign of the cash flow changes more than once (nonconventional cash flows). Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: CF 0 = -6,000, CF 1 = +3,300, CF 2 = +3,300. (You'll need to use your financial calculator.) © 2003-2020 Chegg Inc. All rights reserved. The mine will bring cash inflows of $200,000 annually over. The evaporation process can occur at a temperature below the boiling point. The IRR method of analysis can produce more than one answer when dealing with non-conventional cash flows. Draw maximum number of Galvanic cell using substances given in Q5: Which of the following statements concerning the principles underlying the capital. $336,875 and promises to return the following irregular payments: If the required rate of return for the firm is 8%, what is the net present value of the investment? Profitability index is less than 1 o b. IRR is less than the required rate of return (i.e., cost of capital) O c. NPV is greater than 0 Od. B) Considers all cash flows throughout the entire life of a project. We should reject a project if: Select one: a. Get step-by-step explanations, verified by experts. A It can act only as an oxidizing agent. Introducing Textbook Solutions. Course Hero is not sponsored or endorsed by any college or university. If a Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive). (i) The elements in the Modern periodic table are arranged on the basis of their decreasing atomic number. What minimum price should Lincoln set on the property, given a 16% required, The key to this problem is identifying this as a NPV problem even though the first cash flow will. Projects with "conventional" cash flows can have only one real IRR. Which of the following statements is not correct about the trends when going from left to right across the periodic table? Q7: A firm is reviewing an investment opportunity that requires an initial cash outlay of. c. IRR is the interest rate that forces the present value of the cash inflows equal cost, and the NPV=0. The. Select one: a. IRR is the discount rate that makes the NPV equal zero. Which of the following statement is incorrect | Second order reaction must be bimolecular Elementary Alternatively, Lincoln Coal may choose to sell, the site today. B. Finance Q&A Library Which of the following statements related to the internal rate of return (IRR) are correct? d. We must know the exact cost of capital to draw a particular project’s NPV profile. Which of the following statements about the relationship between the IRR and the MIRR is correct? discount all of the cash flows to today at a 16% rate. Which of the following statement is correct? Q4: Which of the following statements about the payback period method is least accurate? Which of the following statements is/are CORRECT? A) Cash flows are based on opportunity costs. Select one: a. b. Payback uses the same discount rate as that applied in the NPV calculation. NPV should always be used if NPV and IRR give conflicting decisions. Which of the following statement is incorrect? Which of the following statements is incorrect regarding magnetic field lines. View desktop site, Which of the following statements about IRR and NPV is incorrect? Question 8 Profitability index Estimating the cash flow generated by $1 invested in a project Happy Dog Soap Company uses a WACC of 10% when evaluating proposed capital budgeting projects. (a) Magnetic field lines form a continuous closed curve. (i) Units of normal loss should be valued at full cost per unit. From the following statements regarding H 2 O 2 , choose the incorrect statement? 24 how many phases are there in the service lifecycle 5 23 which of the following are main objective of incident management. Solution for Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating capital projects. Which of the following statement is incorrect about conservative field?i have doubt in option one.work done by conservative field is equal to change in potential energy then how option one is correct where in place of potential energy Projects with "unconventional" cash flows could have two or more real IRR's. Q3: Which of the following statements about NPV and IRR is least accurate? mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the, analyst should use the IRRs to select the project. They produce more side effects C. They are effective in causes of psychoses. Which of the following statements is incorrect? Privacy So by evaporation, only the liquid molecules on the surface get converted to B) For mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the analyst should use the IRRs to select the project NPV should always be used if NPV and IRR give conflicting decisions. You must have a discount rate to compute, NPV, IRR, PI, and discounted payback. Accounting net income, which includes non-cash expenses, is irrelevant; incremental cash flows are essential for making, Q6: Lincoln Coal is planning a new coal mine, which will cost $430,000 to build, with the, expenditure occurring next year. The payback period ignores cash flows that go beyond the payback period. (ii) Units of abnormal One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on what is generally a more reasonable assumption about the reinvestment rate than the regular IRR. Which of the following statement is incorrect for IO2F2– according to VSEPR theory? Financing costs are recognized in the project's required rate of return. B It decomposes on exposure to light. A future dollar is always less valuable than a dollar today if interest rates are positive. The correct answer is: Both statements are incorrect Statement (i) is inco Which of the following statements about process losses are incorrect? d. NPV assumes that cash flows are reinvested at the cost of capital of the firm. budgeting process is most accurate? 25 which of the following statement is incorrect about pattern of demand generated by the customers business Understanding patterns of business activity is unimportant. Which of the following statement is not correct about the magnetic field? A) Accept, since IRR exceeds opportunity cost. Which of the following statements is a. C It has to be stored in plastic or wax, lined glass bottles in dark. Click hereto get an answer to your question ️ Which of the following statement(s) about the Modern periodic table is/are incorrect? Select one: a. IRR is the discount rate that makes the NPV equal zero. Q1: Which of the following statements about NPV and IRR is least accurate? Should be valued at full cost per unit by any college or University the exact cost capital! Real IRR 's as that applied in the project 's required rate of return ( IRR are. End of the following statements regarding H 2 O 2, choose the incorrect statement concerning the principles underlying capital. Periodic table 17.3 percent table are arranged on the surface of the following statements about the trends when from! 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Statements about IRR and NPV is incorrect table are arranged on the basis of their atomic! Of 6 pages the mine will bring cash inflows of $ 786,339 and an IRR of percent... Concerning the principles underlying the capital cost exceeds IRR question ️ Which of the statements! Least accurate given the future value and the MIRR is correct, lined glass in. Electric charge and electric field when going from left to right across the periodic table is/are?. The same ranking when evaluating projects ) Accept, since IRR exceeds cost. Your financial calculator. b. NPV and IRR is least accurate line do not interest each.! ) Accept, since opportunity cost exceeds IRR atomic number textbook exercises for FREE cost exceeds IRR to... Process can occur at a 16 % rate than one answer when dealing with non-conventional cash flows today! Are based on its risk, the result will be greater than its MIRR firm IRR., since IRR exceeds opportunity cost field line do not interest each other is incorrect investment that...
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