If the net present value is positive

Assignment Help Financial Management
Reference no: EM131459861

If the net present value is positive,? 1. the internal rate of return exceeds the firm's cost of capital 2. the internal rate of return is less than the firm's cost of capital 3. the present value of cash inflows exceeds the present cost of an investment 4. the present value of cash inflows is less than the present cost of an investment 2 and 4 1 and 4 1 and 3 2 and 3

 

Reference no: EM131459861

Questions Cloud

Relational database architecture : Write a 700- to 1,050-word informal paper using Microsoft® Word in which you address the following:
Loan is to be repaid in equal annual installments : This loan is to be repaid in equal annual installments at the end of each year over the next 7 years. How much will each annual payment be?
What is trade promotion : Cross-selling can be an effective way for a firm to expand. Locate an advertisement for a firm you believe could benefit from cross-selling.
Explain how these factors influence these differences : Explain how these factors influence these differences. Explain how your style of interpersonal communication exemplifies some of these differences.
If the net present value is positive : If the net present value is positive,? the internal rate of return exceeds the firm's cost of capital
Offering certificates of deposit yielding : You are saving to buy a $235,000 house. There are two competing banks in your area, both offering certificates of deposit yielding 4.8 percent.
Can authorities take my computer and search anything on it : If my child uses my computer to commit a crime, can the authorities take my computer and search anything on it, including my personal files and data?
Literature review about workflow : Discuss and Describe at least 11 literature resources relating to the "Workflow" project being carried out.
How much each individual gave during each service : Could you imagine how awkward it would be to have somebody sitting there counting how much each individual gave during each service?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the issue price per share and pre-money valuation

A potential investor is seeking to invest $500,000 in a venture, which currently has 1,000,000 shares held by its founders, and is targeting a 50% return five years from now. The venture is expected to produce half a million dollars in income per yea..

  Expected return-what must the beta of this stock be

A stock has an expected return of 14.9 percent, the risk-free rate is 5.85 percent, and the market risk premium is 7.6 percent. What must the beta of this stock be? (Do not round intermediate calculations. Round your answer to 3 decimal places (e.g.,..

  What is the companys federal income tax bill for the year

The Wendt Corporation had $11.5 million of taxable income. What is the company's federal income tax bill for the year? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as 1,200,000.

  What is the firm cost of preferred stock

Grill Works and More has 6 percent preferred stock outstanding that is currently selling for $44 a share. The market rate of return is 8 percent and the firm's tax rate is 33 percent. What is the firm's cost of preferred stock?

  What is the firm cost of equity if its debt cost

The Hatfields Corporation is a zero growth firm with an expected EBIT of $250,000 and corporate tax rate of 40 percent. Hatfields uses $1,000,000 of debt financing, and the cost of equity to an unlevered firm in the same risk class is 15%. a) What is..

  Determine the net present value of your degree of university

I would like you to utilize the concepts to determine the Net Present Value of your degree of university. Additionally, you may want to further motivate yourself by calculating the degree of effort you are putting into this degree (ie hours expended ..

  Create dollar roll matrix of breakeven rates

Create a dollar roll matrix of breakeven rates for an agency MBS with gross and deal coupons of 8.035% and 7.5%, respectively, and settlement dates 6/14/16 and 9/15/16. Calculate breakeven rates for PSAs of 120, 150, and 180, and forward drops of -40..

  Assuming that the executive leadership includes several

assuming that the executive leadership includes several former accountants how would the organizational goals influence

  What is the required rate of return on a preferred stock

What is the required rate of return on a preferred stock with a $50 par value, a stated annual dividend of 7 % of par, and a current market price of a.) $30, b.) $40 c.) $50 d.) $70 assumes the market is in equilbrium with the required return equal t..

  Firms that are acquired usually have a market price

When Texaco purchased Getty Oil, many financial analysts felt that the deal made sense because it increased Texaco's market share and expanded its shrinking oil reserves. This merger exemplified the belief among the natural resource companies that bu..

  What is your effective annual rate of return

Calculating Returns (CFA1) Looking back at Problem 12, suppose the call money rate is 5 percent and your broker charges you a spread of 1.25 percent over this rate. You hold the stock for six month and sell at a price of $65 per share. What is your e..

  What was its cost of goods sold

If the firm sold 1,260 units in February, what was its cost of goods sold?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd