Finance

In the NPV model, all cash flows are stated ________. A) in future va

In the NPV model, all cash flows are stated ________. A) in future value dollars, and the total inflow is “netted” against the outflow to see if the net amount is positive or negative B) in present value or current dollars, and the outflow is “netted” against the total inflow to see if the gross […]

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Date: September 19th, 2020

The capital budgeting decision model that utilizes all the discounted

The capital budgeting decision model that utilizes all the discounted cash flow of a project is the ________ model, which is one of the single most important models in finance. A) net present value (NPV) B) internal rate of return (IRR) C) profitability index (PI) D) discounted payback period     ANSWER Answer: A

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Date: September 19th, 2020

The net present value of an investment is ________. A) the present va

The net present value of an investment is ________. A) the present value of all benefits (cash inflows) B) the present value of all benefits (cash inflows) minus the present value of all costs (cash outflows) of the project C) the present value of all costs (cash outflows) of the project D) the present value […]

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Date: September 19th, 2020

Which of the following may be TRUE regarding mutually exclusive capita

Which of the following may be TRUE regarding mutually exclusive capital budgeting projects? A) There is need for only one project, and both projects can fulfill that current need. B) By using funds for one project, there are not enough funds available for the other project. C) There is a scarce resource that both projects […]

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Date: September 19th, 2020

Projects are mutually exclusive if picking one project eliminates the

Projects are mutually exclusive if picking one project eliminates the ability to pick the other project. This mutually exclusive situation can arise for different reasons. Which of the statements below is NOT one of these reasons? A) One project will always have a negative NPV. B) There is a scarce resource that both projects would […]

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Date: September 19th, 2020