The irr turned out to be below the cost of capital

Reference no: EM13749285

What was your real return on investment if you bought something for $200 and sold for $240 and if CPI (consumer price index) rose from 124 to 134 during the same period.A Japanese company did an analysis for a project. The NPV turned out to be negative and the IRR turned out to be below the cost of capital. Yet the company decided to take the project. Assuming there were no business strategy component involved in the decision-making what could have been the justification for such an action.

Reference no: EM13749285

Questions Cloud

In which regions the impact of the bantu culture seen : The impact of the Bantu culture can be seen in which of the following regions. During the reign of Cyrus II, the Royal Road of the Persian Empire connected which of the following cities?

How would you implement the modifications into your website : How would you implement the modifications into your website and What can you do to increase the likelihood of consumer patronage

What are the three components of employee involvement : What are the three components of employee involvement and quality-of-work-life programs. Unions adopt one of five reactions to innovative workplace initiatives. What are they

Cloud business process management : Project about: Cloud Business Process Management, Report should be a detail work on cloud business process management. Students should describe cloud, effects of cloud on business, describe at least three business processes

The irr turned out to be below the cost of capital : What was your real return on investment if you bought something for $200 and sold for $240 and if CPI (consumer price index) rose from 124 to 134 during the same period.A Japanese company did an analysis for a project. The NPV turned out to be negati..

Describe any non-price competitive strategies : Describe the company and provide a brief history of its operations. Find or use graphs to illustrate its financial performance over the years - Determine if the company has introduced new products in existing markets or created new markets over tim..

How pompeii given historian good information about romanlife : Explain how Pompeii and Herculaneum have given historians good information about Roman life.

Analyze how communication in groups differs : Analyze how communication in groups differs from individual communication.

Dimensions of system dependability : Dimensions of System Dependability-Consider the four principal dimensions of dependability. Choose two dimensions, describe them, and explain the relationship between your chosen dimensions

User Account

All Pages