Question
Which of the following is (are) true? You must select all correct answers to get credit. Question 2 options: A) NPV measures how much a
Which of the following is (are) true?
You must select all correct answers to get credit.
Question 2 options:
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| A) | NPV measures how much a particular project contributes to shareholder wealth |
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| B) | A project requires an initial cash outflow of $1,000. Then it will produce three positive cash flows of $500. Firm A has a WACC of 15%. Firm B has a WACC of 25%. This project is profitable for both firms. |
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| C) | Independent projects with positive NPV should be accepted |
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| D) | NPV method ignores time value of money |
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| E) | NPV reflects the firm's cost of capital |
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The Handbook Of Financial Modeling
Authors: Jack Avon
1st Edition
1430262052, 978-1430262053
