Question 22

Budgeted sales of a manufacturing company for next year is 15,000 units and 8,500 unit increase in inventory is expected. Required production for next year is

A 8,500 units

B 6,500 units

C 23,500 units

D 15,000 units

Question 23

Which of the following statements is correct

A We should never use IRR to evaluate projects

B Projects ranked by IRR will come out in the same order as if ranked by NPV

C IRR is a useful tool when cost of capital is uncertain

D IRR is better than NPV for project appraisal because it doesnt require a known cost of capital

E All statements are incorrect