Implies necessarily that project is profitable

Assignment Help Financial Management
Reference no: EM131899692

1. Which of the below implies necessarily that a project is profitable?

The project has a payback period shorter than the firm's strategic planning horizon

The project has a profitability index less than 1

The project's IRR is greater than the firm's WACC

The project has an NPV equal to 0

2. A project's NPV is calculated by summing the future incremental cash flows of the project, and subtracting the amount of the required initial investment.

True

False

3. In a mature VC firm, all the activities in the investing cycle will be occurring at the same time.

True

False

Reference no: EM131899692

Questions Cloud

Calculate the npv of leasing for south and superlease : Calculate the NPV of leasing for South and SuperLease. What is the range of annual lease payments that makes leasing acceptable to both of them?
Calculate the price of six-month call option : calculate the price of a 6-month call option on West’s stock that has an exercise price of $27.
Is the presentation effective from the visual aids : View the presentation "What Non-Profits can learn from Coca-Cola" at the link below in attached file.
What state has the most people per senate seat : What state has the MOST people per Senate seat? What TWO powers are granted to the judicial branch besides reviewing lower-court decisions
Implies necessarily that project is profitable : Which of the below implies necessarily that a project is profitable? In a mature VC firm, all the activities in investing cycle will be occurring at same time.
Evaluate digital resource by relying on search engine result : Evaluate digital resources by relying on search engine results and distinguishing relevant digital materials from irrelevant materials.
Conducted on the president performance : A poll of 2,228 likely voters was conducted on the president’s performance.
How would you apply your new knowledge : Consider the content of this class as they relate to Team Management and managerial decision making.
Create a program that can find prime factors of an integer : Create a standalone Java program that can find the prime factors of an integer. Use the Java BigInteger class rather than an int type or the Integer type to all

Reviews

Write a Review

Financial Management Questions & Answers

  What is it''s tax expense and after-tax rate income

The Talley Corporation has a taxable income of $365,000 from operations after alloperatings costs but before: (1) interests charge of $50,000, (2) dividends received of $15,000, (3) dividends paid of $25,000, and (4) income taxes. What is the firm's ..

  Why should firms use local marketing research companies

Why should firms use local marketing research companies?

  Shareholders of financing project out of retained earnings

Axon Industries needs to raise $2500000 USDs for a new investment project. If the firm issues 1-year debt, it may have to pay an interest rate of 6%, although Axon's managers believe that 4% would be a fair rate given the level of risk.  What is the ..

  Determine the cost of the standardized recipe

Determine the cost of the following standardized recipe. calculating the extension cost, the total cost and the cost per serving.

  What is the sustainable rate of growth

The Green Giant has a 4 percent profit margin and a 30 percent dividend payout ratio. The total asset turnover is 1.2 and the equity multiplier is 1.5. What is the sustainable rate of growth?

  What is its cost of common equity

Patton Paints Corporation has a target capital structure of 45% debt and 55% common equity, with no preferred stock. Its before-tax cost of debt is 9% and its marginal tax rate is 40%. The current stock price is P0 = $32.00. The last dividend was D0 ..

  Preparing budgets for the drug discovery unit

Your job analyzing and preparing budgets for the drug discovery unit has been interesting and fulfilling.

  In auditing privately held entity

In auditing a privately held entity, an auditor must follow the professional standards established by all of the following except:

  Calculate the cost of equity using the DCF method

Berta Industries stock has a beta of 1.25. The company just paid a dividend of $0.40, and the dividends are expected to grow at 5 percent. The expected return on the market is 12 percent, and Treasury bills are yielding 5.8 percent. The most recent s..

  Home equity line of credit

A home equity line of credit (HELOC) is, loosely speaking, like a credit card for your home. You can borrow money by drawing down on the line of credit. what is the after-tax interest rate you will pay on any borrowings under the HELOC?

  Why whole life insurance policy requires a larger premium

Develop a set of family circumstances where each of term insurance and whole life insurance are the most appropriate type of policy to meet the consumer's needs. Explain why a whole life insurance policy requires a larger premium than a term insuranc..

  Compute the marginal cost of capital schedule for ml

Matsumoto Limited (ML), a large conglomerate firm. Compute the marginal cost of capital schedule for ML, and determine the break points in the schedule.

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