The difference between the npv and pv stems from

Assignment Help Financial Management

Reference no: EM132033549

1. The difference between the NPV and PV stems from

A. a difference in discount rate.

B. the fact that the NPV includes the Terminal Value.

C. the fact that the IRR is the discount rate that sets NPV = 0.

D. the fact that the NPV includes the Initial Investment.

2. Which of the following statements is INCORRECT?

a. MIRR is the discount rate that causes the PV of a project’s terminal value (TV) to equal the PV of costs. TV is found by compounding inflows at WACC.

b. MIRR assumes cash flows are reinvested at the WACC.

c. MIRR avoids the multiple IRR problem.

d. The phenomenon called "multiple internal rates of return" arises when two or more mutually exclusive projects that have different lives are being compared.

e. Managers like rate of return comparisons, and MIRR is better for this than IRR.

Reference no: EM132033549

Questions Cloud

Record the acquisition of each of these assets : Construction of Building: A building was constructed on land purchased last year at a cost of $660,000. Record the acquisition of each of these assets

Customers who utilize trade credit offered by the company : Explain the points of financial impact on a company if it raises the credit standards required of its customers who utilize trade credit offered by the company.

Means of treating bacteria : Are there some bacteria that can't be stained by the Gram-stain and are there other means of treating these bacteria so they can be easily viewed under

Cytoskeleton is targeted by viral proteins : 1. What message is the cell sending to the outside world once it's been infected?

The difference between the npv and pv stems from : The difference between the NPV and PV stems from

What targets the proteosome-protease to the walking : What targets the proteosome/protease to the "walking" virus?

Preoperative teaching with a client newly diagnosed : The nurse is doing preoperative teaching with a client newly diagnosed with a stage 1 cervical cancer. which statement by the client indicates that education

Which senses are involved in motion-type sicknesses : Which senses are involved in motion-type sicknesses, how dysfunction of these systems may exist, and the physiological processes

What is the significance of finding pink colonies : What is the significance of finding pink colonies growing on MacConkey agar from a water sample?

User Account

All Pages