If the net present value is positive, it signals a. that the initial investment has been recovered.

Question:

If the net present value is positive, it signals
a. that the initial investment has been recovered.
b. that the required rate of return has been earned.
c. that the value of the firm has increased.
d. all of the above.
e. both a and b.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

See More Books

Question Posted: Aug 23, 2022 10:24 AM

See More Questions

If the firms required rate of return is 14 percent, what is the net present value of the following project? Year Cash Flow 0 .......... $(75,000) 1 .......... 50,000 2 .......... 40,000
If the firms required rate of return is 12 percent, what is the MIRR for the following project? Year Cash Flow 0 .......... $(105,000) 1 .......... 70,000 2 .......... 50,000
Indicate which project would be selected if the net present value is used Indicate which project would be selected if the internal rate of return is used Indicate which criteria you would suggest...
Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry. c. Outline Barrys...
Following legislative initiatives from California, Canadas Minister of Transport, Infrastructure and Communities has committed the federal government to regulate the fuel consumption of new cars and...
At what distance a should the bearing supports at A and B be placed so that the displacement at the center of the shaft is equal to the deflection at its ends? The bearings exert only vertical...
When done correctly, trend prediction can prove invaluable to business success. Explain what this process would involve. LO.1
Is independence impaired for the individual or the public accounting firm on these SEC filing audits according to SEC independence rules? a. CPA Yolanda is the Best & Co engagement partner on the...
Check my work Zira Co. reports the following production budget for the next four months. April May July Production (units) 652 680 686 666 June Each finished unit requires four pounds of raw...
Whispering issued an 9%, 10-year $1,800,000 bond to build a monorail mass transit system. The city received $1,587,988 cash from the bond issuance on January 1, 2025. The bond yield is 11%. Interest...
An investment of $1,000 provides an average net income of $220 with zero salvage value. Depreciation is $20 per year. The accounting rate of return using the original investment is a. 44 percent. b....
Net present value measures a. the profitability of an investment. b. the change in wealth. c. the change in firm value. d. the difference in present value of cash inflows and outflows. e. all of the...
Lynn Company has outstanding 52,000 shares of $10 par value common stock and 25,000 shares of $20 par value preferred stock (8 percent). On December 1, 2009, the board of directors voted an 8 percent...
Aircraft $B$ has a constant speed of $150 \mathrm{~m} / \mathrm{s}$ as it passes the bottom of a circular loop of 400-m radius. Aircraft $A$ flying horizontally in the plane of the loop passes...
A small inspection car with a mass of $200 \mathrm{~kg}$ runs along the fixed overhead cable and is controlled by the attached cable at $A$. Determine the acceleration of the car when the control...
An aircraft $P$ takes off at $A$ with a velocity $v_{0}$ of $250 \mathrm{~km} / \mathrm{h}$ and climbs in the vertical $y^{\prime}-z^{\prime}$ plane at the constant $15^{\circ}$ angle...
If each resistor in Figure P31.75 has resistance $R=5.0 \Omega$, what is the equivalent resistance of the combination? Data from Figure P31.75 wwwwww wwwww www www wwwww
Identify the proper point to recognize expense for each of the following transactions. a. Kat Inc. purchases on credit six custom sofas for $\$ 800$ each in June. Two of the sofas are sold for \(\$...
Find an equation of the conic described. Graph the equation. Parabola; focus at (-2, 0) directrix the line ; x = 2
Data on weekday exercise time for 20 females, consistent with summary quantities given in the paper An Ecological Momentary Assessment of the Physical Activity and Sedentary Behaviour Patterns of...
Rambotix Company has two divisions, the Semiconductor Division and the X- ray Division. The X- ray Division may purchase semiconductors from the Semiconductor Division or from outside suppliers. The...
The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and...
The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and...
Calculate the current ratio and the quick ratio for the following partial financial statement for Tootsie Roll Note: Round your answers to the nearest hundredth
Required information Skip to question [ The following information applies to the questions displayed below. ] Golden Corporation's current year income statement, comparative balance sheets, and...
Glencove Company makes one model of radar gun used by law enforcement officers. All direct materials are added at the beginning of the manufacturing process. Information for the month of September...

If the net present value is positive, it signals a. that the initial investment has been recovered.

Question:

Step by Step Answer:

Answer and Explanation If the net present value is positive ...View the full answer

Cornerstones of Managerial Accounting

Students also viewed these Business questions