Question
What is the best way to select a project that has resource restrictions? Explain. Why must opportunity costs must be included in cash flows, while
What is the best way to select a project that has resource restrictions? Explain.
Why must opportunity costs must be included in cash flows, while sunk costs and interest expense must not?
Compare and contrast the uses of break-even analysis and sensitivity analysis in evaluating project risk.
What are the effects of coupon rate to the sensitivity of a bond price and to changes in interest rates?
What is the relation between a corporate bonds expected return and the yield to maturity. In your answer, define default risk and explain how these rates incorporate default risk
Why should investors who identify positive-NPV trades be skeptical about their findings if they don't inside information or a competitive advantage? What return should the average investor expect to receive?
Kindly provide detailed answers in atleast 6-7 lines each and provide proper references
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