Present value method is used to investment opportunities

Assignment Help Financial Management

Reference no: EM131354571

1. When using the net present value method, if the net present value of a project is negative, then the ________.

the project should be rejected

the project should be accepted

the project should be recalculated for missing cash inflows

None of these

2. Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen?

the investment with the lowest net present value

the investment with a net present value equal to zero

the investment with a negative net present value

the investment with the largest net present value

Reference no: EM131354571

Questions Cloud

Company strategy can be consider ethical : A Company's strategy can be consider "ethical". if each element of its strategy is "legal". if its actions and behaviors fall within the bounds of "fair competition".

Something to look for in identifying company strategy : Which of the following is something to look for in identifying a company's strategy?

Investment in fixed assets or an acquisition of another firm : What factors must corporations consider and why when making long-term investment decisions, be it an investment in fixed assets or an acquisition of another firm? Provide examples

Annual revenue each year for the next seven years : Your company will generate $50,000 in annual revenue each year for the next seven years from a new information database. If the interest rate is 4%, what is the present value of the savings?

Present value method is used to investment opportunities : Assume the net present value method is used to evaluate investment opportunities. A manager is faced with several investments, but only has funding for one investment. Which investment should be chosen? When using the net present value method, if the..

Statements about performance measures : An example of a nonfinancial goal is ________. Which of the following statements about performance measures is FALSE?

Which separate measures of revenues and costs : A responsibility center for which separate measures of revenues and costs are obtained is called a(n) ________. Financial performance of a manager is measured by ________. Financial performance of a segment is measured by ________.

Cash inflow from sale of long-term plant asset at loss : The cash inflow from the sale of a long-term plant asset at a loss is equal to the ________. The cash inflow from the sale of a long-term plant asset at a loss is equal to the ________.

What is expected return on portfolio : You own a portfolio that is 28 percent invested in Stock X, 20 percent in Stock Y, and 52 percent in Stock Z. The expected returns on these three stocks are 8 percent, 19 percent, and 15 percent, respectively. What is the expected return on the portf..

User Account

All Pages