The IRR of a project is the discount rate that ________. a. Makes the NPV equal to

Question:

The IRR of a project is the discount rate that ________.

a. Makes the NPV equal to zero

b. Equates the present value of the cash inflows to the future value of the cash outflows

c. Makes the NPV positive

d. Equates the present value of cash outflows to the future value of the cash inflows

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

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Finance

ISBN: 9798439388899

1st Edition

Authors: Julie Dahlquist, Rainford Knight

See More Books

Question Posted: Jun 24, 2022 05:49 AM

See More Questions

Multiple Choice Questions 1. NPV is calculated by using a. The required rate of return. b. Accounting income. c. The IRR. d. The future value of cash flows. e. None of these. 2. Using NPV, a project...
Multiple-Choice Questions 1. Net present value is calculated by using a. Accounting income. b. The required rate of return. c. The IRR. d. The future value of cash flows. e. None of the above. 2....
The Think-Big Development Co. is a major investor in commercial real estate development projects. It currently has the opportunity to share in three large construction projects: Project 1: A...
Suppose the final exam in this class has a normal, or bell-shaped, grade distribution of exam scores, with an average score of 80. An approximate function that models your classs grades on the exam...
An engineer needs to take three technical electives sometime during his final four semesters. The three are to be selected from a list of ten. In how many ways can he schedule those classes, assuming...
Let us say that the (2R,3R) and (2S,3R) products in eq. 5.7 are formed in a 60:40 ratio. What products would be formed and in what ratio by adding HBr to pure (S)-3-chloro-1-butene? By adding HBr to...
Wcstinghouse Electric Company has experimented with different means of evaluating the performance of solder joint inspectors. One approach involves comparing an individual inspector's classifications...
The following interfund transactions occurred in Becca Citys General Fund during the year ended December 31, 2012. For each transaction, describe its nature (e. g., is it an interfund transfer, an...
Problem 10-11 (Algo) Direct Materials and Direct Labor Variances; Computations from Incomplete Data [LO10-1, LO10-2] Sharp Company manufactures a product for which the following standards have been...
Rainbow Products is considering the purchase of a paint-making machine to reduce labor costs. The savings are expected to result in additional cash flows to Rainbow of $5000 per year. The machine...
When faced with a decision between two good but mutually exclusive projects, should a manager base the decision on NPV or IRR? Why?
If Westland Manufacturing finds that its cost of funds is 11%, what will happen to the NPV of the project in problem 2? Data from problem 2 Westland Manufacturing spends $20,000 to update the...
Using the method of Sec. 7.6, solve Prob. 7.38. 12 kips Ct D - 3A 6ft-
Absorption linewidth for an absorbing atomic transition. Consider the curves of power transmission T(w) = exp[-2am(w)L] through an atomic medium with a lorentzian resonant transition, plotted versus...
EXAMPLE 05.04 Z Write the force and the couple in the vector form (with rectangular/Cartesian components). Use C = 180 N-m and P = 500 N O INDIVIDUAL Submission (IS12) D x 400 mm B C 300 mm A 400 mm...
1.XYZ Corporation budgets factory overhead cost of P500,000 for the coming year. Compute for the overhead cost applied to the job. The following data are available: Budgeted annual overhead for...
OP Technologies Manufacturing manufactures small parts and uses an activity-based costing system. Activity Materials Assembling Packaging Est. Indirect Activity Costs $65,000 $242,000 $90,000...
3. Solve Example 3.7 (Bergman, Lavine, Incropera, and DeWitt, 6th Ed., pp. 129-132, or 7th Ed., pp. 145-149, or 8th Ed., pp. 134-138), but use the finite difference method. T T = 30C Insulation-...
Plot the space curve and its curvature function (t). Comment on how the curvature reflects the shape of the curve. r(t) = (t - sin t, 1 - cos t, 4 cos(t/2) ), 0 < t < 8
Annual dividends of ATTA Corp grew from $0.96 in 2005 to $1.76 in 2017. What was the annual growth rate?
Manufacturing overhead costs totaling $500,000 are expected for this coming year$200,000 in the Assembly department and $300,000 in the Finishing department. The Assembly department expects to use...
Describe the four categories related to the costs of quality. How might the allocation of quality costs to these four categories help managers?
Describe the four categories included in the hierarchy of costs.
Practice Problem 1 The stockholders equity accounts of Bramble Corp. on January 1, 2017, were as follows. Preferred Stock (6%, $100 par noncumulative, 4,400 shares authorized) $264,000 Common Stock...
JVCU Which of the following is considered cash for financial reporting purposes? 1 JVCU Which of the following is considered cash for financial reporting purposes? 1
Required information The Foundational 15 [LO8-2, LO8-3, LO8-4, LO8-5, LO8-7, LO8-9, L08-10) (The following information applies to the questions displayed below.) Morganton Company makes one product...

The IRR of a project is the discount rate that ________. a. Makes the NPV equal to

Question:

Step by Step Answer:

Answer The internal rate of return takes into account time value of money IRR i...View the full answer

Principles Of Finance

Related Video

Students also viewed these Business questions