Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer questions 1&2 QUE S TION 1 A company currently has sales of $450,000 per year. If company management increases sales by 4%
Please answer questions 1&2
\
QUE S TION 1 A company currently has sales of $450,000 per year. If company management increases sales by 4% per year, what will sales be in 9 years from now? O $640,490.32 O $612,000.00 O $635,211.72 O $830,980.63 ( None of these QUE S TION 2 Which of the following statements is CORRECT? O a. If the NPV is negative, the IRR must also be negative. O b. If Project A's IRR exceeds Project B's, then A must have the higher NPV. O C. A project's MIRR can never exceed its IRR O d. If a project with normal cash flows has an IRR greater than the WACC, the project must also have a positive NPV O e. If a project with normal cash flows has an IRR less than the WACC, the project must have a positive NPV QUE S TION 3 Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series O a. If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to re long-lived projects, and this will cause its risk to increase over time. O b. The regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem. O C. The longer a project's payback period, the more desirable the project is normally considered to be by this criterion
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started