Which of the following statements is correct

Assignment Help Microeconomics
Reference no: EM131029688

Which of the following statements is CORRECT?

a.One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project's full life whereas IRR does not.

b.One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at the IRR. The NPV assumption is generally more appropriate.

c.One advantage of the NPV over the MIRR method is that NPV takes account of cash flows over a project's full life whereas MIRR does not.

d.One advantage of the NPV over the MIRR method is that NPV discounts cash flows whereas the MIRR is based on undiscounted cash flows.

e.Since cash flows under the IRR and MIRR are both discounted at the same rate (the WACC), these two methods always rank mutually exclusive projects in the same order.

Reference no: EM131029688

Questions Cloud

Compare health systems from different global settings : Assignment outcomes: Compare health systems from different global settings and Analyze health systems from different global settings
Suppose a firm uses two inputs : Suppose a firm uses two inputs, 1 and 2, in the production of a final good. In the short run, if input 2 is fixed and its price goes down, what happens to the firm's profit?
Find the center transverse,axis,vertices,foci and asymptotes : Find the center, transverse,axis,vertices,foci and asymptotes.
Problem regarding the global transportation : What risks and perils are present in global transportation? Discuss how exporters and importers can manage these risks.
Which of the following statements is correct : Which of the following statements is CORRECT? a.One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project's full life whereas IRR does not.
Do they have to be linearly independent : In the usual probit model, are the response variables independent from one subject to another? Or conditionally independent given the explanatory variables ? Do the explanatory variables have to be statistically independent? Do they have to be li..
Describe the four groups of incoterms : What is the role of trade terms in global transportation? Briefly describe the four groups of Incoterms.
Taggart inc. is considering a project : Taggart Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1
Types of transportation challenges : What types of transportation challenges must organizations take into account when considering global sourcing?

Reviews

Write a Review

Microeconomics Questions & Answers

  The required return on investment in this machine for david

david wants to buy a machine for his firm. he expects to incur the maintenance cost of 500 at the end of the 1st year

  The manufacture of high-quality flatbed scanners

4. The manufacture of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for the product are assumed to be as follows: TC = 500,000 + 0.85Q + 0.015Q2 and Q =14,166 - 16.6..

  Identify components of marketing, pricing for the campaign

Describe the ultimate goal of the product campaign for the new shampoo. Discuss your methods for achieving this goal. Identify the components of marketing, pricing, and distribution for the campaign.

  Why is economics called the dismal science

Why is economics called the dismal science? Never understood this expression

  Assume there is only one good in the economy

Assume there is only one good in the economy,Wheat. The economy has enough labour capital, and land to produce Y=800 bushels of wheat. In 2005,M=2000 dollar, P=5 dollar/bushel.1)Compute the nominal GDP and the velocity of money in 2005

  In a paragraph or two compare the following two insurance

lets divide medical care into two groups routine and catastrophic. well define routine care as being essentially

  Examine the rates of growth in the service categories

Examine the rates of growth in the service categories (except the category "other"). What trends do you see in the mix of healthcare services used by the US public? What factors might contribute to these trends?

  What is the discount rate in the banking system

If you had a business exporting goods to Britain, and U.S. inflation fell as discussed above in this example, would you plan to expand production or cut back? Why?

  For each recognize determinant of supply or demand which is

suppose we are analyzing the market for hot chocolate and at equilibrium. for each identify the determinant of supply

  How many canscapitayear on soft drink must be for the state

demand can be estimated with experimental data time-series data or cross-section data. in this case cross-section data

  Consider the following utility function uxy min 3x xy 2y

consider the following utility function uxy min 3x xy 2y. sketch the indifference curves and show where the corners

  1for each of the following pairs of goods or services

1.for each of the following pairs of goods or services identify the one for which the price elasticity of demand is

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd