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Please answer any one or all of these! thank you Your firm is considering what has been estimated to be a positive NPV project (NPV
Please answer any one or all of these! thank you
- Your firm is considering what has been estimated to be a positive NPV project (NPV > 0).What can you say or infer about the project's payback period, discounted payback method, IRR, profitability index, and accounting rate of return (Please be thorough)?
- Basic NPV methods tell us that the value of a project today is NPV0.Time value of money issues also lead us to believe that if we choose not to do the project that it will be worth NPV1 one period from now, such that NPV0 > NPV1.Why then do we see some firms choosing to defer taking on a project.Be thorough in your answer.
- When a single rate is used and the divisions are very different in their risk profiles, using a single rate can lead to either an over-investment or an under-investment problem. Using an example, briefly described both of these potential problems.
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