Question
Please answer All parts Which (if any) of the following are not disadvantages to using the Payback Period method of project evaluation: Part 1 options:
Please answer All parts
Which (if any) of the following are not disadvantages to using the Payback Period method of project evaluation:
Part 1 options:
| It ignores the time value of money |
| It ignores cash flows beyond the cutoff date |
| It is biased against long-term projects |
| All of the above are disadvantages |
Part 2
If a project has a net present value equal to zero, then:
Part 2 options:
| IRR must also equal zero. |
| The total of the cash inflows must equal the initial cost of the project. |
| Any delay in receiving the projected cash inflows will cause the project to have a positive NPV. |
| A decrease in the project's initial cost will cause the project to have a negative NPV. |
| The IRR is equal to the required rate of return. |
Part 3
Asset A has an expected return of 15%. The Market Risk Premium is 9% and the risk-free rate is 4%. What is Asset As beta?
part 3 options:
| 1.57 |
| 3.67 |
| 1.38 |
| 2.20 |
| 1.22 |
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