Conflicts between npv and irr on mutually exclusive projects

Assignment Help Financial Management

Reference no: EM131562453

1. Conflicts between NPV and IRR on mutually exclusive projects can be due to the following reasons:

a. the reinvestment rate assumption, the expenditure in time period 0, and salvage value

b. Project scale, the reinvestment rate assumption, size of cash flows

c. the expenditure in time period "0, the riskiness of the projects, and the salvage value

d. Timing of cash flows, project scale, and the reinvestment rate assumption

e. the reinvestment rate assumption, the expenditure in time period "0" and the riskiness of the project

2. The standard deviation of a portfolio is the weighted average of the state deviations of the individual stocks in the portfolio.

a. true

b. false

Reference no: EM131562453

Questions Cloud

After-tax cost of dollar-denominated debt : What is Bruma's after-tax cost of dollar-denominated debt?

Define the put option price : Suppose that puts are traded. What should a 26-week put with an exercise price of $112 sell for?

Solar electric system to reduce the amount of electricity : DJ is considering the purchase of a $20,000 solar electric system to reduce the amount of electricity he purchases from the grid.

Pay for put on stock with same maturity and exercise price : How much would you be willing to pay for a put on this stock with the same maturity and exercise price?

Conflicts between npv and irr on mutually exclusive projects : Conflicts between NPV and IRR on mutually exclusive projects can be due to the following reasons:

Three-month call options and three-month puts on stock : It is possible to buy three-month call options and three-month puts on stock Q. If the interest rate is 6.15% a year, what is the stock price?

What is the expected return on a portfolio : What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?

Calculate the cost of common equity : Calculate the cost of common equity. Assume that the expected return on a market portfolio is 15%, the company's beta is 1.20 and the risk-free rate is 4%.

Order to produce the same effective interest rate as offered : What quoted rate does Thames have to offer in order to produce the same effective interest rate as offered by Piccadilly?

User Account

All Pages