FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When a project's internal rate of return equals its opportunity cost of capital, then the: A. project should be rejected. B. project has no cash

When a project's internal rate of return equals its opportunity cost of capital, then the:

A.

project should be rejected.

B.

project has no cash inflows.

C.

net present value will be positive.

D.

net present value will be zero.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets and Institutions

Financial Markets and Institutions

Authors: Frederic S. Mishkin, Stanley G. Eakins

8th edition

013342362X, 978-0133423624

More Books

Students also viewed these Finance questions

Question

★★★★★
In the current year, 2014, Reality Corporation reported $200,000 of pre-tax earnings on its income statement. The corporate tax rate is 40% in the current year and next year, and it is scheduled to...

Answered: 1 week ago

Question

★★★★★
Does the franchisor offer financing for a portion of the franchising fees? On what terms?

Answered: 1 week ago

Question

★★★★★
=+b) What might you consider doing next?

Answered: 1 week ago

Question

★★★★★
Macs Warehouse is a large discount store that operates 7 days per week. The store needs the following number of full-time employees working each day of the week: Each employee must work 5 consecutive...

Answered: 1 week ago

Question

★★★★★
The following events apply to Complete Business Service in Year 1, its first year of operations: 1. Recelved $43,000 cash from the issue of common stock. 2. Earned $38,000 of service revenue on...

Answered: 1 week ago

Question

★★★★★
You are given the following continuously compounded forward rates: 00.2= 6.5%, 02,3 8.0%, 072,4- 8.0%, andor2,5= 8.0%. You also know that Bond A, which matures at the end of year 5 and pays $10 at...

Answered: 1 week ago

Question

★★★★★
On January 1 , 2 0 1 8 , Princess Corporation leased equipment to King Company. The lease term is ten years. The first payment of $ 8 0 0 , 0 0 0 was made on January 1 , 2 0 1 8 . The equipment cost...

Answered: 1 week ago

Question

★★★★★
Lucia has a bank account at First Street Bank. She received Form 1099-INT, Interest Income, shown below. She has no other interest or dividends to report. How should this income be reported on...

Answered: 1 week ago

Question

★★★★★
Use Exhibit 1. Which of the following statements is (are) correct? Exhibit 1 Production Possibilities Trucks Cars 1,000 0 800 1,600 500 2,700 0 3,500 x The opportunity cost of the first 500 trucks is...

Answered: 1 week ago

Question

★★★★★
An owner of a growing medical practice is interested in hiring a physician employee to help with the workload. What representations and warranties should be included in the physician's employment...

Answered: 1 week ago

Question

★★★★★
20.Rene and Sebastian, who are bitter enemies, engaged in a gunfight. In the ensuing battle, Rene killed Sebastian with a shot to the head. In the criminal case for Murder filed against Rene, the...

Answered: 1 week ago

Question

★★★★★
A Treasury bill has a bid yield of 1.97% and an ask yield of 1.93%. The bill matures in 126 days. Assume a face value of $1,000. What is the dollar spread for this bill? (Do not round intermediate...

Answered: 1 week ago

Question

★★★★★
A PMM model follows a structured approach from assessing the current state of maturity to implementing improvement. Which step, as per OPM3, is critical before performing the assessment? a. Plan for...

Answered: 1 week ago

Question

★★★★★
Organizations that recognize the need for project management processes without established practices are at which CMMI maturity level? a. Level 1 Initial b. Level 2 Managed c. Level 3 Defined d....

Answered: 1 week ago

Question

★★★★★
The PMO acts as an overseer and ambassador for its programs and projects, but heavy demand on PMO resources can result in__________: a. Increased headcount b. Increased bureaucracy c. Burn-out of PMO...

Answered: 1 week ago

Previous Question Next Question