The internal rate of return is most reliable when evaluating

Assignment Help Financial Management

Reference no: EM131310917

The internal rate of return is most reliable when evaluating:

a) a single project with alternating cash inflows and outflows over several years.

b) mutually exclusive projects of differing sizes.

c) a single project with cash outflows at time 0 and the final year and inflows in all other time periods.

d) a single project with only cash inflows following the initial cash outflow.

Reference no: EM131310917

Questions Cloud

The beneficiary of a life insurance policy : You are the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds. You can receive a lump sum of $200,000 today or receive payments of $1400 a month for 20 years. You ..

Different basic intrerest rate swap and futures positions : Suppose that you buy an interest rate cap on three-month LIBOR with a two-year maturity and somutaneously sell a floor on three-month LIBOR with a two-year maturity. Ignore the premiums. Draw a profit diagram that indicates when you will gain and los..

What price was the bond sold : A 10-year bond with face value of 2000 and coupon rate of 8% was purchased to give effective annual yield of 10% until maturity. After the 13th coupon, the bond was sold at the price to give a seller effective annual yield of 12%. What price was the ..

Breakeven analysis-calculate breakeven price : Breakeven Analysis: Calculate the breakeven price from the information. total variable costs and total revenue intersect. total revenue outpaces total avoidable fixed costs. total costs and total revenue intersect.

The internal rate of return is most reliable when evaluating : The internal rate of return is most reliable when evaluating:

Part-time consulting work : Eric borrowed money last year to buy a new car for his part-time consulting work. The loan is a 3-ycar loan with 36 monthly payments. If Eric can use dollar 10,000 of his savings to purchase a device now (at the end of 15 months) that can boost his c..

Bank net interest income of interest rates increasing : Suppose that a bank has $5 billion of one-year loans and $30 billion of five-year loans. These are financed by $25 billion of one-year deposits and $10 billion of five –year deposits. Explain the impact on the bank’s net interest income of interest r..

What are these payments worth to you on the day : Your grandmother is gifting you $100 a month for four years while you attend college to earn your bachelor's degree. At a 5.2 percent discount rate, what are these payments worth to you on the day you enter college?

Bank return on equity being reduced to zero : Suppose that a bank has $5 billion of one-year loans and $35 billion of five-year loans. These are financed by $35 billion of one-year deposits and $5 billion of five-year deposits. The bank has equity totaling $2 billion and its return on equity is ..

User Account

All Pages