Question
Please answer both or none! Thank you ahead of time. Explain answer Part2 a.If you are evaluating a project that has a cost of capital
Please answer both or none! Thank you ahead of time. Explain answer
Part2
a.If you are evaluating a project that has a cost of capital of 12% and your analysis results in a negative NPV, which of the following statements is true?
The IRR is higher than 12%. | |
There is no relationship between the IRR and the NPV. | |
The IRR is lower than 12%. | |
The IRR is exactly equal to 12%. |
b.A company's 'bottom line' or net income decreased. Which of the following statements is most correct?
Either sales decreased, expenses increased, or both may have happened. | |
The only possible cause is that sales decreased. | |
Either sales increased, expenses decreased, or both may have happened. | |
The only possible cause is that expenses increased. |
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