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q4,45

? where the answer i waited a lot of time

QUESTION 4 Which of the following statements about the NPV is false: O The NPV is calculated by subtracting the initial investment from the present value of all future cash flows. O This method consider the TVM by converting all cash flows to the present value. NPV is measured in percentage and hence does not present the actual cash profit. All of the above are true. QUESTION 5 Ahmed is analysing two investments. Investment A has an IRR of 23% and Investment B has an IRR of 17%, if the cost of capital is 10% then: O Both projects are rejected due to the low IRR. O Both projects are rejected as the IRR is higher than the cost of capital. O Investment B is better than Investment A O None of the above are true