Normal projects s and l have the same npv
WebQ4. Which of the following statements is/are not correct concerning the discount payback period, the IRR and the NPV methods? a. a project with an Internal Rate of Return (IRR) equal to the Required Rate of Return (RRR) will have an NPV of zero. b. a project's NPV may be positive even if the IRR is less than the Required rate of return (RRR). c. WebIn capital budgeting analyses, it is possible that NPV and IRR will both involve assuming reinvestment of the project's cash flows at the same rate. ANS: T If the cost of capital happens to be equal to the IRR, this condition can exist. DIF: Medium TOP: Reinvestment rate assumption. A project's NPV increases as the required rate of return declines.
Normal projects s and l have the same npv
Did you know?
WebC) If the cost of capital increases, each project's IRR will decrease. D) If Projects S and L have the same NPV at the current cost of capital, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the cost of capital used to evaluate the projects declined. E) Project S must have a higher NPV than Project L. WebProjects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L's IRR is 12%. The two projects have the …
WebProjects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L’s IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT? Answer If the WACC is 10%, both projects will have positive NPVs.
Web29 de jun. de 2024 · If Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used … WebProject S has an IRR of 15%, while Project L’s IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT …
WebProjects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L’s IRR is 12%. The two projects have the same NPV when the WACC is 7%.
WebTrue. Other things held constant, an increase in the cost of capital will result in a decrease in a project's IRR. False. Under certain conditions, a project may have more than one … flow sheet diagram for paper productionWebStudy with Quizlet and memorize flashcards containing terms like The regular payback method is deficient in that it does not take account of cash flows beyond the payback … flowsheeting options翻译Web11 de abr. de 2024 · Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L’s IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT? Answer. If the WACC is 10%, both projects will have positive NPVs. green color block imageWebIf Projects S and L have the same NPV at the current WACC, 10%, then Project L, the one with the lower IRR, would have a higher NPV if the WACC used to evaluate the projects … flow sheet diagram of sulphuric acidWebThe modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method. a. True. b. False. [12].The NPV method's assumption that cash inflows are reinvested at the cost of capital is more reasonable than the IRR's assumption that cash flows are reinvested at the IRR. This makes the NPV method preferable to the IRR method. green color block curtainsWeb2 de jan. de 2024 · Projects S and L are equally risky, mutually exclusive, and have normal cash flows. Project S has an IRR of 15%, while Project L’s IRR is 12%. The two projects have the same NPV when the WACC is 7%. Which of the following statements is CORRECT? Answer. If the WACC is 10%, both projects will have positive NPVs. green color blocksWeb14. Normal Projects S and L have the same NPV when the discount rate is zero. However, Project S’s cash flows come in faster than those of L. Therefore, we know that at any discount rate greater than zero, L will have the higher NPV. 3 green color blindness