Question
The Droom project has all positive cash flows for all 7 years of its life.Its discounted pay-back period is 5.5 years, and undiscounted pay-back period
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The Droom project has all positive cash flows for all 7 years of its life.Its discounted pay-back period is 5.5 years, and undiscounted pay-back period is 5 years.
If the cost of project's investment (at time zero) declines from $1000 to $900, then what is true?
I. The project's NPV will increase
II. The project's IRR will increase
None of the Above
I and II
II only
I only
Cannot answer about I and II without additional information.
The Droom project has all positive cash flows for all 7 years of its life.Its discounted pay-back period is 5.5 years, and undiscounted pay-back period is 5 years.
If the cost of project's investment (at time zero) declines from $1000 to $900, then what is true?
I. The project's NPV will increase
II. The project's IRR will increase
| None of the Above | ||
| I and II | ||
| II only | ||
| I only | ||
| Cannot answer about I and II without additional information. |
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Introduction To Finance Markets, Investments, And Financial Management
Authors: Ronald W Melicher, Edgar Norton
13th Edition
0470128925, 9780470128923
