Lower internal rate of return and profitability index

Assignment Help Financial Management
Reference no: EM13728250

Why is it possible for investments to have a higher net present value than a competing investment but still have a lower internal rate of return and profitability index than that competitor?

Reference no: EM13728250

Questions Cloud

Assume simple interest between bond coupon dates : A $1000 bond with semi-annual coupons, with coupon rate of 6% per annum convertible semi-annually, matures at par on October 15th, 2020. The bond is purchased on June 28th, 2005 to yield the investor a nominal rate of 7% per annum convertible semi-an..
Write an expanded definition for that technical term : write an expanded definition for that technical term for a general audience. 200 word minimum ad for a newspaper
What is the value of the premium : Among a company’s assets and accounting records, an actuary finds a 10-year bond that was purchased at a premium. What is the value of the premium?
Define how social and cultural factor influenced development : Explain how social and cultural factors influenced the development of Freud's and Rogers' respective theories of personality.
Lower internal rate of return and profitability index : Why is it possible for investments to have a higher net present value than a competing investment but still have a lower internal rate of return and profitability index than that competitor?
Explain how the practical rule discussed practical rule : Suppose you are an accountant for a large publicly traded company. You discover an error in the financial records that makes the company look more profitable. Explain how the practical rule discussed in the textbook would be applied to this situat..
List the guidelines for writing descriptions : List the guidelines for writing descriptions. Describe their importance, and provide an example
Identify the main provisions of the article of confederation : Identify and describe the main provisions of the Articles of Confederation. Then identify and discuss the main weaknesses of the Articles and the so-called Western Problem.
Assignment on whole foods market practices : Read "Whole Foods Market Practices What It Preaches," discuss how Whole Foods Market's emphasis on the employee stakeholder leads to overall stakeholder well-being.

Reviews

Write a Review

Financial Management Questions & Answers

  Options on microsoft stock-compute the gross profit

Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expiration date of January 16th.

  Find the yield rate for the lender

A $1000 loan over a 10-year period earns an effective rate of interest of 9% per annum. Interest is paid each year as accrued and the principal is repaid at the end of ten years. If the repayments to the lender are reinvested at 7%, find the yield ra..

  What is the expected net income for your firm next year

The forecast for your firm indicates there's a 20% chance that Net Income will be $200,000, a 50% chance it will be $300,000, and a 30% chance it will be $400,000. Assume your firm is zero-growth and pays all its net income in dividends each year Als..

  Part a an issue that attracts debate in relation to

part a an issue that attracts debate in relation to corporate governance is whether there should be a requirement that

  Explain how using a risk-adjusted discount rate improves

Explain how using a risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects?

  Calculate the projects annual free cash flow

The Clayton Manufacturing Company is considering an investment in a new automated inventory system for its warehouse that will provide cash savings to the firm over the next five years. The firm’s CFO anticipates additional earnings before interest, ..

  Suppose the spot exchange rate for the canadian dollar

Suppose the spot exchange rate for the Canadian dollar is Can$1.04 and the six-month forward rate is Can$1.06. Which is worth more, a U.S. dollar or a Canadian dollar?

  Blades plc is a uk-based company that has been incorporated

blades plc is a u.k.-based company that has been incorporated in the united kingdom for three years. blades are a

  Consumers awareness and concerns

Collecting and using personal data: consumers' awareness and concerns

  Select a company for analysis this company should be quoted

select a company for analysis. this company should be quoted on one of the principal international exchanges.prepare a

  A municipal bond carries a coupon rate of 7 and is trading

a municipal bond carries a coupon of 7 nbspand is trading at par what would be the equivelant taxable yield off this

  What will be your annual loan payments

You need $19,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 5 years, with the first payment to be made one year from today. He requires a 9% annual r..

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