admin

For the NPV criteria a project is acceptable if the NPV is__________ while for the profitability index a project isacceptable if the profitability index is __________. […]

Your company is considering a project with the following cashflows: Initial outlay = $1748.80 Cash flows Years 16 = $500Compute the IRR on the project. A. […]

The rate that a subsidiary or parent of the multinationalcorporation charges other divisions of the firm for its products iscalled a(n):a. forward price.b. transaction price.c. transfer […]

Which of the following best describes the goal of the firm?A. The maximization of the total market value of the firms commonstock]B. Profit maximizationC. Risk minimizationD. […]

How long will it take $750 to double at 8% compoundedannually?A. 9 yearsB. 48 monthsC. 12 yearsD. 6.5 years

Which of the following is considered to be a spontaneous sourceof financing?A. InventoryB. Accounts receivableC. Accounts payableD. Operating leases

Which of the following statements about the MIRR is false?A. A projects MIRR could be lower than a projects IRR.B. The MIRR has the same reinvestment […]

We compute the profitability index of a capital-budgetingproposal by:A. dividing the present value of the annual after-tax cash flows bythe cost of the project.B. dividing the […]

The present value of a single future sum:A. depends upon the number of discount periods.B. is generally larger than the future sum.C. increases as the discount […]