Question
b.)Assume you are evaluating 3 mutually exclusive investment projects, the NPV rule and IRR rule will give the same absolute yes/no decision on each project
b.)"Assume you are evaluating 3 mutually exclusive investment projects, the NPV rule and IRR rule will give the same absolute yes/no decision on each project and will also generate the same relative rankings (i.e. they will agree on what is the best and what is the worst project.)"
True
False
c.)You calculate a project s expected cash flows with straight line depreciation and then with accelerated depreciation. The NPV of the project will be greater with the accelerated depreciation cash flows.
True
False
d.)"Assume that a project has the following cash flows: -170 / 30 / 40 / 50 / 60 / 70. Given the risk of the project, assume that the hurdle rate is 10%. The IRR of this project will be:"
Less than 10% | ||
Equal to 10% | ||
Greater than 10% | ||
You can t tell with the information that is given. |
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