Most appropriate one for evaluating projects

Assignment Help Financial Management
Reference no: EM131914979

1. Which of the following capital budgeting techniques is the most appropriate one for evaluating projects?

Accounting rate of return

Internal rate of return

Net present value

Payback period

2. If a project’s IRR exceeds its _____, the project should be _____.

cost of capital; accepted

cost of capital; rejected

MIRR; rejected

NPV; accepted

Reference no: EM131914979

Questions Cloud

How much should you charge for option : Assume that you have the rights to a coal mine and the most recent valuation of the mine was £6.6 million. How much should you charge for the option?
Estimate the weights of capital for the company : Estimate the weights of capital (debt, preferred stock, and common stock) for the company.
Conducting capital budgeting analysis of project : Which of the following is one of the steps necessary for conducting a capital budgeting analysis of a project?
The annual operating cash flow for this project : The applicable tax rate is 40 percent. The annual operating cash flow for this project is $___.
Most appropriate one for evaluating projects : Which of the following capital budgeting techniques is the most appropriate one for evaluating projects?
Company is looking to replace its conveyor belt system : The Easton manufacturing Company is looking to replace its conveyor belt system.
The initial cash outflow for project : The amount should be used as the initial cash outflow for this project is $____.
Firm use to discount project cash flows : If company is evaluating new investment project that has the same risk as firm’s typical project, what rate should the firm use to discount project’s cash flows
What key competencies were missing : What key competencies were missing that caused the venture to fail?

Reviews

Write a Review

Financial Management Questions & Answers

  Terms of the income statement and balance sheet collectively

Analyze and compare your two companies in terms of the income statement and balance sheet collectively.

  Gold futures contract with current price

A gold futures contract with current price $650 has a maturity of two years. If the T-bill rate is 4%, what should the futures price be?

  Home furnishings offers you two alternative payment plans

The store where you bought new home furnishings offers you two alternative payment plans.

  What is after-tax cost of capital for this debt financing

What is the after-tax cost of capital for this debt financing?

  Time value of money problems

How long will it take for a $2,000 investment to double in value? What will be the value of 20 years of $500 invested at the end of each year for next 20 years.

  What is the NPV of book with the royalty payments

What is the NPV of the book with the royalty payments?

  Company be over the depreciable life of the equipment

What will the yearly after-tax depreciation benefit to the company be over the depreciable life of the equipment?

  What is wilsons time-weighted rate of return

On the following January 1, his fund balance is $3700. What is Wilson's time-weighted rate of return?

  An enterprise or internal service fund

Used to track resources earmarked for a specific purpose. An enterprise or internal service fund.

  How long does it take to double your money

At 5.75 percent interest, how long does it take to double your money? At 5.75 percent interest, how long does it take to quadruple your money?

  Assuming that both investments have the same risk

You are comparing two investment options: Assuming that both investments have the same risk, the bond is valued fairly

  What is the risk premium for your portfolio

If your portfolio has an expected return of 14.46 percent, then what is the expected return for Litchfield Design?

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