19. When using IRR to evaluate a single project which of the following statements is true?...

19. When using IRR to evaluate a single project which of the following statements is true?

Group of answer choices

a. IRR fails to consider the time value of money.

b. IRR fails to consider cash flows beyond the cut-off point.

c. IRR may reject the project when NPV says accept.

d. There may be multiple IRRs for non-conventional cash flows.

Expert Solution

a. IRR considers the time value of money. - Incorrect

b. IRR considers cash flows beyond the cut-off point. - Incorrect

c. IRR and NPV says same decision in the case of a single Project - Incorrect

d. There may be multiple IRRs for non-conventional cash flows. Change in Sign of Cash flows results multiple IRRs- Correct

Answer D

jeff jeffy answered 2 years ago

Which of the following statements is FALSE? a. When using the incremental IRR rule, you must...

Which of the following statements is FALSE? a. When using the incremental IRR rule, you must keep track of which project is the incremental project and ensure that the incremental cash flows are initially positive and then become negative. b. When the risks of two projects are different, only the NPV rule will give a reliable answer. c. Problems arise using the IRR method when the mutually exclusive investments have differences in scale. d. Picking one project over another simply...

Which of the following statements is true about a 360-degree appraisal? It involves using a single...

Which of the following statements is true about a 360-degree appraisal? It involves using a single source for appraisal information. Usually, feedback is obtained only from top level managers. It often misses qualities that other appraisal methods capture. Often, the person being rated can select the appraisers. Its objective is to provide a basis for administrative decisions.

Which of the following statements regarding the heat transfer in a PWR are true? The single...

Which of the following statements regarding the heat transfer in a PWR are true? The single phase coolant enters the core with fixed temperature and high pressure (15.5 MPa) and it is heated up by fission heat by about 33 K As the heated-up coolant leaves the core, it is passed into the turbine. The water in the secondary side of the steam generator is heated up by the coolant in the primary loop until boiling

Consider two projects, X and Y. Project X's IRR is 19% and Project Y's IRR is...

Consider two projects, X and Y. Project X's IRR is 19% and Project Y's IRR is 17%. The projects have the same risk and the same lives, and each has constant cash flows during each year of their lives. If the cost of capital is 10%, Project Y has a higher NPV than X. Given this information, which of the following statements is CORRECT? a. The crossover rate must be greater than 10%. b. If the cost of capital...

Which of the following statements is NOT true when describing a proportionate mortality rate? A) When...

Which of the following statements is NOT true when describing a proportionate mortality rate? A) When calculating this measure, all deaths for the period of study are included in the denominator. B) This measure is expressed as a percentage of all deaths. C) This measure is used to describe the proportion of deaths in a defined population that is attributable to a specific cause. D) This measure is used to describe the total number of deaths in a defined population,...

Which of the following statements is true about the use of a single, firm-wide cost of...

Which of the following statements is true about the use of a single, firm-wide cost of capital for evaluating all of a firm's investment projects? Question 6 options: A) Firms do not ever do that, nor should they. B) Firms that operate in multiple divisions, spanning the globe, can view their cost-of-capital calculation as diversifiable and thus use a single cost-of-capital. C) Firms operating in a single, narrow line of business are most likely to appropriately use one cost of...

Which of the following statements is true? a) If single measurements on identically prepared systems give...

Which of the following statements is true? a) If single measurements on identically prepared systems give identical results, the system is in the eigenfunction corresponding to the measured eigenvalue. b) If a system is in a superposition state, a single measurement on identically prepared systems will always give the same result. c) If a system is in a superposition state, a single measurement on identically prepared systems will give any one of the possible eigenvalues with equal probability. d) If...

What is the problem than can occur when using the NPV and IRR to evaluate mutually...

What is the problem than can occur when using the NPV and IRR to evaluate mutually exclusive projects. What are the problems associated with using the payback statistic to evaluate capital budgeting projects? Describe the problems associated with using the IRR statistic to evaluate capital budgeting projects.

What is the true IRR of the following project? Assume the firm would be able to...

What is the true IRR of the following project? Assume the firm would be able to reinvest the cash flows at a 7% rate of return. Year A 0 -1,000 1 600 2 400 3 400 Select one: a. 15.32% b. 14.00% c. 12% d. 14.21% e. 14.85%

19. Which of the following statements is true? Choose all that apply. a) Acidic solutions taste...

19. Which of the following statements is true? Choose all that apply. a) Acidic solutions taste bitter. b) Basic solutions taste bitter. c) Acidic solutions cause red litmus to change color to blue. d) Basic solutions cause blue litmus to change color to red. e) [H3O+] is less than 1.00 x 10-7 in a basic solution. f) [OH-] is less than 1.00 x 10-7 in a basic solution.

Question