Reference no: EM131321314
1. Which of the following statements is FALSE?
A) If there is a fixed supply of resource available, you should rank projects by the profitability index, selecting the project with the lowest profitability index first and working your way down the list until the resource is consumed.
B) Practitioners often use the profitability index to identify the optimal combination of projects when there is a fixed supply of resources.
C) If there is a fixed supply of resources available, so that you cannot undertake all possible opportunities, then simply picking the highest NPV opportunity might not lead to the best decision.
D) The profitability index is calculated as the NPV divided by the resources consumed by the project.
2. Which of the following statements is FALSE?
A) The profitability index measures the value created in terms of NPV per unit of resource consumed.
B) The profitability index is the ratio of value created to resources consumed.
C) The profitability index can can be easily adapted for determining the correct investment decisions when multiple resource constraints exist.
D) The profitability index measures the "bang for your buck."
|
Current assets–current liabilities
: Money that has been or will be paid regardless of the decision whether or not to proceed with the project is: Current Assets – Current Liabilities =
|
|
Capital structure analysis
: (Capital structure analysis) Last year the Rondoelea Products Company had $ 132 million in annual sales and a net profit margin of 9.4 percent. In addition, Rondoelea's average tax rate was 30 percent. If Rondoelea had $ 44 million of debt outstandin..
|
|
Concepts of learning curve
: In a paper, measure the occurrence and effects of learning curves in your project's working environment. In your assessment, include topics such as the Learning Curve Concept, the cumulative average curve, follow-up on orders, and manufacturing break..
|
|
Capital budget lists the projects and investments
: A capital budget lists the projects and investments that a company plans to undertake during the coming year. When sales of a new product displace sales of an existing product, the situation is often referred to as cannibalization. Because value is l..
|
|
The profitability index measures the bang for your buck
: Practitioners often use the profitability index to identify the optimal combination of projects when there is a fixed supply of resources. The profitability index is calculated as the NPV divided by the resources consumed by the project. The profitab..
|
|
Waiariki bay of plenty poly merger
: PROJECT PLAN STRUCTURE You MUST use Microsoft Word to produce a professional plan using technical writing style that is acceptable at an industry standard. Ensure that you use suitable headings to guide a reader through your proposal. To assist you, ..
|
|
Mutually exclusive investment opportunities
: You are trying to decide between three mutually exclusive investment opportunities. The most appropriate tool for identifying the correct decision is: Picking one project over another simply because it has a larger IRR can lead to mistakes.
|
|
Considering opening strip mining operation
: Rearden Metals is considering opening a strip mining operation to provide some of the raw materials needed in producing Rearden metal. The initial purchase of the land and the associated costs of opening up mining operations will cost $100 million to..
|
|
Strategic management for human resource impact
: Strategic Management for Human resource impact on the performance of Firm, Outline for a scientific project description (research proposal with a model) - 5 pages (2000-2500words)
|