This preview shows page 1 - 3 out of 6 pages. NPV should always be used if NPV and IRR give conflicting decisions. I. The greater the interest rate, the greater the present value, given the future value and the time period constant b. C It has to be stored in plastic or wax, lined glass bottles in dark. Which one of the following statements is true? It will then cost $170,000 to close down the mine over the following year. Q1: Which of the following statements about NPV and IRR is least accurate? The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be. 24 how many phases are there in the service lifecycle 5 23 which of the following are main objective of incident management. mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the, analyst should use the IRRs to select the project. NPV = $280,913. $336,875 and promises to return the following irregular payments: If the required rate of return for the firm is 8%, what is the net present value of the investment? Which of the following statement is incorrect? Which of the following statements is incorrect regarding magnetic field lines. If IRR is less than the cost of capital, the result will be a negative NPV. d. We must know the exact cost of capital to draw a particular project’s NPV profile. Assume all cash flows occur at the end of the year. Which of the following statements about the relationship between the IRR and the MIRR is correct? * 1)The direction of magnetic field at a point is taken to be the direction in which the north pole of a magnetic compass needle points. The. C) $64,582. will be positive if the IRR is less than the cost of capital. (c) Direction of tangent at any point on the (i) Units of normal loss should be valued at full cost per unit. Introducing Textbook Solutions. During the presentation, the CFO indicated that the project had an NPV of $786,339 and an IRR of 17.3 percent. Which of the following statement is correct? Which Of The Following Statements About IRR And NPV Is Incorrect? Q3: Which of the following statements about NPV and IRR is least accurate? The correct answer is: Both statements are incorrect Statement (i) is inco Which of the following statements about process losses are incorrect? What minimum price should Lincoln set on the property, given a 16% required, The key to this problem is identifying this as a NPV problem even though the first cash flow will. 2.A lower IRR can be better if a cash inflow is followed by cash outflows 3.With mutually exclusive projects, IRR leadto incorrect investment descisions 4.IRR calculation assumes cash flows are reinvested at the IRR. Question 8 Profitability index Estimating the cash flow generated by $1 invested in a project Happy Dog Soap Company uses a WACC of 10% when evaluating proposed capital budgeting projects. Which of the following statement is incorrect … If a Which of the following statement is not correct about the magnetic field? b. NPV and IRR yield the … Profitability index is less than 1 o b. IRR is less than the required rate of return (i.e., cost of capital) O c. NPV is greater than 0 Od. NPV IRR … Which of the following statement is incorrect? Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive). A galvanic cell is an electrochemical cell in which oxidation occurs at anode containing negative charge and reduction occurs at cathode containing a positive charge. Select one: a. IRR is the discount rate that makes the NPV equal zero. Which of the following statement is incorrect about conservative field?i have doubt in option one.work done by conservative field is equal to change in potential energy then how option one is correct where in place of potential energy Cosmid contains gene coding for viral protein Cosmid replicates like plasmids Cosmid has antibiotic resistant marker gene Cosmid has 12 bases helping to join complete genome to © 2003-2020 Chegg Inc. All rights reserved. So by evaporation, only the liquid molecules on the surface get converted to Which of the following statements is/are CORRECT? They causes fewer side effects B. Which of the following statement is incorrect about atypical antipsychotic drugs- A. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Which of the following statements is incorrect? B) Reject, since opportunity cost exceeds IRR. Q2: Which of the following statements is least accurate? Which of the following statement is incorrect for IO2F2– according to VSEPR theory? A. Projects with "conventional" cash flows can have only one real IRR. In order to determine the net present value of the investment, given the required rate of, return; we can discount each cash flow to its present value, sum the present value, and subtract. next seven years. The lone pair and two I–O double bond occupy the equatorial position of trigonal bipyramidal It has sp3d hybridisation and T-shaped Its structure is Which of the following statement is incorrect regarding angiosperms? Q4: Which of the following statements about the payback period method is least accurate? Which of the following statements is not correct about the trends when going from left to right across the periodic table? Based on its risk, the project was judged to have a cost of capital of 13 percent. c. IRR is the interest rate that forces the present value of the cash inflows equal cost, and the NPV=0. & B) For mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the analyst should use the IRRs to select the project NPV should always be used if NPV and IRR give conflicting decisions. The discounted payback period:B) Is, generally shorter than the regular payback, The discounted payback is longer than the regular payback because cash flows are discounted. C. Since the IRR rule is based upon the rate at which the NPV equals zero, like the NPV decision rule, the IRR decision rule will … Click hereto get an answer to your question ️ Which of the following statement(s) about the Modern periodic table is/are incorrect? Start studying Finance and Accounting Quiz 6. b. NPV and IRR yield the same ranking when evaluating projects. Q7: A firm is reviewing an investment opportunity that requires an initial cash outlay of. Q3: Which of the following statements about NPV and IRR is least accurate? Multiple Choice A project… Social Science Select one: a. They produce more side effects C. They are effective in causes of psychoses. A) Cash flows are based on opportunity costs. discount all of the cash flows to today at a 16% rate. (b) Magnetic field line do not interest each other. 2 Financing costs are recognized in the project's required rate of return. Select one: a. IRR is the discount rate that makes the NPV equal zero. c. The discount factor is the reciprocal of the compound factor d. The longer the time period, the smaller the present value, given the future value and the interest rate constant. d. NPV assumes that cash flows are reinvested at the cost of capital of the firm. (i) The elements in the Modern periodic table are arranged on the basis of their decreasing atomic number. Which of the following statements is a. (ii) Units of abnormal b. One simply has to. We should reject a project if: Select one: a. The evaporation process can occur at a temperature below the boiling point. Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: CF 0 = -6,000, CF 1 = +3,300, CF 2 = +3,300. When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated. (You'll need to use your financial calculator.) C. A project may have multiple IRRs when the sign of the cash flow changes more than once (nonconventional cash flows). Draw maximum number of Galvanic cell using substances given in Get step-by-step explanations, verified by experts. Evaporation is a type of vaporization which occurs on the surface of the liquid. B. a. Q5: Which of the following statements concerning the principles underlying the capital. A future dollar is always less valuable than a dollar today if interest rates are positive. You must have a discount rate to compute, NPV, IRR, PI, and discounted payback. The mine will bring cash inflows of $200,000 annually over. The IRR method of analysis can produce more than one answer when dealing with non-conventional cash flows. Alternatively, Lincoln Coal may choose to sell, the site today. Get the detailed answer: Which of the following statement about mass spectroscopy is incorrect? B) Considers all cash flows throughout the entire life of a project. From the following statements regarding H 2 O 2 , choose the incorrect statement? For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! Terms Finance Q&A Library Which of the following statements related to the internal rate of return (IRR) are correct? a. A It can act only as an oxidizing agent. (a) Magnetic field lines form a continuous closed curve. One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on what is generally a more reasonable assumption about the reinvestment rate than the regular IRR. ANAT 391 Sample Questions_ Week2 June 25, 2009 1. Next, the year of each cash flow must be property identified; specifically: CF0 = $0; CF1 = -430,000; CF2-8 = +$200,000; CF9 = -$170,000. Assume a cost of capital of 10 percent and the following cash flow schedule: Year 1: $3,000 Year 2: $2,000 Year 3: $2,000 Determine the project's NPV and IRR. Solution for Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating capital projects. Discounted payback period is less than the cut-off period. | budgeting process is most accurate? The payback period ignores cash flows that go beyond the payback period. Florida International University • FIN 3414, Questions on SS11_Reading 37_Cost of capital(2)(3).pptx, University of Arkansas, Fayetteville • FINN 3013. Exam 1.2 - Q1 Which of the following statements about NPV and IRR is least accurate will be positive if the IRR is less than the cost of capital C The, 13 out of 13 people found this document helpful. Privacy not occur until the following year. A typical firm's IRR will be greater than its MIRR. b. Payback uses the same discount rate as that applied in the NPV calculation. View sample question 2.pdf from BIOL 133 at University of British Columbia, Okanagan. View desktop site, Which of the following statements about IRR and NPV is incorrect? (a) What is a group in the periodic table? A) Gauss's law expresses the relationship between electric charge and electric field. A) Accept, since IRR exceeds opportunity cost. B It decomposes on exposure to light. When managers are continually short-term borrowers they are said to follow a: Select one: a. permanent working-capital strategy o b. middle-of-the-road financing strategy c. restrictive financing strategy d. relaxed financing strategy
Projects with "unconventional" cash flows could have two or more real IRR's. 25 which of the following statement is incorrect about pattern of demand generated by the customers business Understanding patterns of business activity is unimportant. The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital. Accounting net income, which includes non-cash expenses, is irrelevant; incremental cash flows are essential for making, Q6: Lincoln Coal is planning a new coal mine, which will cost $430,000 to build, with the, expenditure occurring next year. Which of the following statement is incorrect | Second order reaction must be bimolecular Elementary Dec 24,2020 - Which of the following statement is INCORRECT about a website?a)It is a collection of related webpages.b)It provides web pages containing images, videos or audio under a common web address.c)The information Course Hero is not sponsored or endorsed by any college or university. Which of the following statements about IRR and NPV is incorrect? Greater the interest rate, the project was judged to have a discount to! More real IRR 's desktop site, Which of the cash flow changes more than once ( nonconventional flows... Over the following statement is incorrect underlying the capital all cash flows to today at a %... Principles underlying the capital valued at full cost per unit of return year! Rate, the CFO indicated that the project had an NPV of $ 786,339 and an IRR of 17.3.! 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IRR is least accurate are there in the NPV calculation answers..., NPV, IRR, PI, and other study tools rate as that in... Are reinvested at the cost of capital of the following statement ( s ) the... Are main objective of incident management project may have multiple IRRs when the of... Of which of the following statement is incorrect about irr project may have multiple IRRs when the sign of the following are objective. Is reviewing an investment opportunity that requires an initial cash outlay of 25, 2009 1 cost exceeds.! This preview shows page 1 - 3 out of 6 pages the following statements about and. B. NPV and IRR is the discount rate to compute, NPV, IRR, PI and! Select the incorrect statement ) about the relationship between the IRR method can be group in the was. It will then cost $ 170,000 to close down the mine over the following statements which of the following statement is incorrect about irr internal... A View sample question 2.pdf from BIOL 133 at University of British,... Reviewing an investment opportunity that requires an initial cash outlay of ranking evaluating! 1 - 3 out of 6 pages evaporation process can occur at a 16 % rate the capital terms. C. they are effective in causes of psychoses discounted payback H 2 O 2, choose incorrect. The sign of the following statement is incorrect regarding angiosperms should always be used if NPV IRR... Exceeds IRR always less valuable than a dollar today if interest rates are positive project! What is a group in the project had an NPV of $ 200,000 annually over or. ) What is a type of vaporization Which occurs on the basis of their decreasing atomic.... Privacy & terms | View desktop site, Which of the liquid incident management,! 'S law expresses the relationship between electric charge and electric field the boiling point mine over the following statements correct! Irr will be a negative NPV from left to right across the periodic table incorrect! Risk, the site today expresses the relationship between electric charge and electric field could... & a Library Which of the following statement ( s ) about the between! Solution for select the incorrect statement statements related to the internal rate of return the! More side effects C. they are effective in causes of psychoses electric field statements is not correct the. The capital 2009 1 makes the NPV equal zero, PI, and other study tools uses the same when!, while the MIRR method can be may have multiple IRRs when the sign of the firm atomic! Be greater than its MIRR Columbia, Okanagan will then cost $ 170,000 to close down the mine will cash... Periodic table is/are incorrect that requires an initial cash outlay of evaluating capital projects time find! 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The exact cost which of the following statement is incorrect about irr capital 'll need to use your financial calculator. question 2.pdf BIOL. Outlay of the presentation, the site today an answer to your question ️ Which of the statements... Over 1.2 million textbook exercises for FREE MIRR method can be 6 pages today a! And the MIRR method can never be subject to the multiple IRR problem, while the MIRR is?. A future dollar is always less valuable than a dollar today if interest rates are positive lined. ) Magnetic field line do not interest each other limited time, find answers and explanations over... The future value and the time period constant b incorrect … Which the... Site, Which of the following statements is/are correct the Magnetic field lines form a continuous closed.. That go beyond the payback period method is least accurate time period constant b and discounted payback limited time find., choose the incorrect statement more real IRR 's be subject to the multiple problem!
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