71. The internal rate of rerotate and also net present worth methods: A. always give the same investment decision answer.B. never before offer the very same investment decision answer.C. generally offer the very same investment decision answer.D. always offer answers different from the payago technique.

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72. A characteristic of capital budgeting is A. a big amount of money is constantly associated.B. the interior rate of rerotate should be much less than the cost of funding.C. the interior price of rerotate should be better than the expense of funding.D. the moment horizon is at leastern five years.

 

73. A job requires an investment of $2,500 and has a net current value of $430. If the IRR is 10%, what is the profitcapacity index for the project? A. 0.25B. 2.33C. 0.70D. 1.17

Net existing value = Present out value of inflows - Present value of outflows$430 = Present out worth of inflows - $2,500Present out value of inflows = $2,930

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74. With non-mutually exclusive projects. A. the payago approach will pick the ideal job.B. the net existing value is not acceptable.C. the internal price of rerevolve method will certainly constantly choose the finest task.D. the net current value and also the internal rate of return approaches will certainly accept or disapprove the same task.

 

75. The Net Present out Value Method is a more conservative technique for selecting investment jobs than the Internal Rate of Return strategy bereason the NPV method A. assumes that cash flows are reinvested at the project's internal rate of return.B. concentprices on the liquidity aspects of investment tasks.C. assumes that cash flows are reinvested at the firm's weighted average expense of resources.D. none of these.

 

76. The _________ assumes retransforms are reinvested at the expense of resources. A. payago methodB. inner price of returnC. net present valueD. capital rationing

 

77. In utilizing the interior price of rerotate method, it is assumed that cash flows have the right to be reinvested at A. the expense of equity.B. the cost of funding.C. the inner rate of rerevolve.D. the prevailing interest rate.

 

78. For acceptable investments, the reinvestment presumption under the inner price of return is generally A. greater than under the net present-value approach.B. lower than under the net present-value strategy.C. at the price of funding.D. below the expense of funding.

 

79. The interior price of return assumes that funds are reinvested at the: A. cost of funding.B. yield on the investment.C. minimal acceptable price to the corporation.D. yield to maturity.

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80. If an investment job has actually a positive net present value, then the interior rate of rerevolve is A. less than the expense of resources.B. higher than the expense of capital.C. equal to the cost of funding.D. indeterminate; it counts on the size of the task.