Solution-NPV or net present value, Which of the following

NPV or net present value

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Reference no: EM133306314

1. Which of the following statement is false about the traditional pa yback method

a. payback adjust for time value of money

b. payback is relatively easy to compute

c. payback favor liquid projects.

d. payback is a good supplement to NPV.

2. NPV or net present value

a. decrease as the required return / WAAC Increases

b. is equal to initial investment when the IRR equal to the required

c. can only be applied to independt projects

d. is unafactted by the timimg of cash flow

3. Asumme all components of ROE are positive . all the following will increase roe except

a. increasing the sales price leaving all else constant

b. decreasing the law materials cost of inventory , leaving all else constant

c. decreasing leverage , leaving all else constant

d. decreasing inventory turns , leaving all eslr consrant

Reference no: EM133306314

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NPV or net present value

Reference no: EM133306314

Reference no: EM133306314

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