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Please give an answers that 122 to 128. Which of the following is an advantage of using the NPV method to evaluate different projects? NPV
Please give an answers that 122 to 128.
Which of the following is an advantage of using the NPV method to evaluate different projects? NPV can be customized to reflect the financial concerns and demands of the company. NPV converts future revenue to current dollars, allowing the company to quantify a project's value. It allows for easy comparisons of potential investments. All of these answers. Which of the following is NOT included in calculating a project's NPV? The exact discount rate. The project's opportunity cost. The exact amounts of cash flow related to the project. All of these answers. Which of the following reasons is reason why a higher discount rate generally means a lower NPV? When the discount rate is large, there are larger differences between PV and FV for each cash flow. A higher discount rate emphasizes earlier cash flows, which is when the expenses are incurred. Most projects do not pay off until years later, and those cash flows are highly discounted. All of these answers. Which of the following is a way cash flow factors can be used to improve a business? It can be used to evaluate the "quality" of income generated by accrual accounting. It can be used to determine problems with a business's liquidity. It can be used to determine a project's rate of return or value. All of these answers. Which of the following criteria is NOT taken into consideration when analyzing a possible replacement project? The sunk cost associated with the original project. The depreciation associated with the old and potential replacement investment. The discounted cash flows from the old and potential replacement investment. The cashflows the current project has generated in the past. Which of the following could be a sunk cost? Irrational decision-making that led to a transaction. The expected economic loss of a transaction. The original cost of the item. All of these answers. Which of the following is an example of an opportunity cost? If invest in one of two projects, the cost is the lost revenue from the other project. If you buy a candy bar instead of a soda, the cost is thirst. you watch a game instead of going for a run, the cost is poorer personal health. All of these answersStep by Step Solution
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