The net present value is a measure of profits expressed

Assignment Help Financial Management

Reference no: EM131063465

Which one of the following statements is correct?

a.) The net present value is a measure of profits expressed in today's dollars.

b.) The net present value is positive when the required return exceeds the internal rate of return.

c.) If the initial cost of a project is increased, the net present value of that project will also increase.

d.) If the internal rate of return equals the required return, the net present value will equal zero.

e.) Net present value is equal to an investment's cash inflows discounted to today's dollars.

Reference no: EM131063465

Questions Cloud

What are the key risk factors of the project : What was the relationship between the technology and the end users who would use the technology? What was the relationship between the technology and the Census Bureau management?

What is the companys cost of equity : The Absolute Zero Co. just issued a dividend of $2.80 per share on its common stock. The company is expected to maintain a constant 5.8 percent growth rate in its dividends indefinitely. If the stock sells for $56 a share, what is the company’s cost ..

Concept of dominant coalitions : Organisations have human monsters that foil or fuel change. Explain using the concept of dominant coalitions how these human monsters can be managed to prevent organisations from breaking down into varying factions where individuals and groups sta..

Prepare a classified balance sheet at december : Explain your response to event (4). Prepare a classified balance sheet at December 2012. Compute the current ratio for 2012. What does this suggest about Cougar Plastics?

The net present value is a measure of profits expressed : The net present value is a measure of profits expressed in today's dollars. The net present value is positive when the required return exceeds the internal rate of return. If the initial cost of a project is increased, the net present value of that p..

Seven-firm concentration ratio in the printer industry : The table below shows recent worldwide market shares of producers of printers. (See page 576 and Problem 26-1) Firm Share of Worldwide Market Sales Brother 2% Canon 22% Dell 6% Epson 18% Hewlett-Packard 36% Lexmark 4% Samsung 11% Other 1% a. In this ..

Discount rate of zero percent investment-net present value : Charles Henri is considering investing $36,000 in a project that is expected to provide him with cash inflows of $12,000 in each of the first two years and $18,000 for the following year. At a discount rate of zero percent this investment has a net p..

Tesla and comparing it to toyota : Need help with an assignment here is the info. Need it put into a power point presentation and the companies we are using are Tesla and comparing it to Toyota. If you have any questions let me know! Thanks. Here is the SIC number for Tesla Motors ..

Overall performance of a project : As you have read in this unit's assigned reading, earned value management (EVM) assists project managers when measuring the overall performance of a project. EVM can be very useful in project forecasting and is used for cost and schedule control.

User Account

All Pages