Results from the net present value analysis are reliable

Assignment Help Financial Management

Reference no: EM131315135

Given that the net present value (NPV) is generally considered to be the best method of analysis, why should you still use the other methods? (choose 1)

A. The internal rate of return must always indicate acceptance since this is the best method from a financial perspective.

B. The other methods help validate whether or not the results from the net present value analysis are reliable.

C. The discounted payback method must always be computed to determine if a project returns a positive cash flow since NPV does not measure this aspect of a project.

D. You need to use the other methods since conventional practice dictates that you only accept projects after you have generated three accept indicators.

E. You need to use other methods because the net present value method is unreliable when a project has unconventional cash flows.

Reference no: EM131315135

Questions Cloud

Compute her gain or loss recognized on sale : Janine Welch inherited a house from her father. Her father’s basis in the house was $550,000, and the fair market value at the date of her father’s death was $875,000. Her father’s taxable estate was only $2.4 million, so the estate did not owe any f..

Deduction for their home mortgage interest : In 2013, Chip and Jane Wood paid $83,700 interest on a mortgage they incurred to build their home in Charleston, SC. The average principal balance of the mortgage was $1,430,000. The home has an appraised FMV of only $1,200,900. Compute Chip and Jane..

Assume the price of the computer remains constant : Isaac only has $1,090 today but needs $1,979 to buy a new computer. How long will he have to wait to buy the computer if he earns 5.4 percent compounded annually on his savings? Assume the price of the computer remains constant.

Components of a comprehensive healthcare plan : What are the components of a comprehensive healthcare plan offered by employers? What outcomes are desired by the employer after implementation of the health plan? How would these outcomes be measured?

Results from the net present value analysis are reliable : Given that the net present value (NPV) is generally considered to be the best method of analysis, why should you still use the other methods? The internal rate of return must always indicate acceptance since this is the best method from a financial p..

Subway restaurant manager general : Describe a Manhattan, Kansas, Subway Restaurant manager's general, task, and internal environments. Include at least two elements of each, and describe them.

Conduct research to find out applications for dfigs : Conduct research to find out applications for DFIGs and write a summary report. Focus your analysis on power rating, economical reasons, control approach, and flexibility of such systems.

Does media provide realistic and fair depiction of terrorism : Should the violence depicted in the media be censored in an effort to prevent public fear and panic? Why? Does the media provide a realistic and fair depiction of terrorism

Social media in hiring : What discrimination risks are involved when social media in hiring?

User Account

All Pages