Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

which statement is incorrect? Net Present Value Profile 50,000 40,000 30,000 NPV -A 20,000 NPV-B 10,000 0 02 4 6 8 10 12 14 16

which statement is incorrect?
image text in transcribed
image text in transcribed
Net Present Value Profile 50,000 40,000 30,000 NPV -A 20,000 NPV-B 10,000 0 02 4 6 8 10 12 14 16 -10,000 Discount Rates (%) When cash flow of project A has opposite direction of CF of project B, NPV and IRR tend to give conflicting ranks. See the table above. Among these three projects below, you should pick project B. When the scale of cash flow of projects A and B are different, NPV and IRR tend to give conflicting ranks. From the above graph, we should pick project B. Net Present Value Profile 50,000 40,000 30,000 NPV -A 20,000 NPV-B 10,000 0 02 4 6 8 10 12 14 16 -10,000 Discount Rates (%) When cash flow of project A has opposite direction of CF of project B, NPV and IRR tend to give conflicting ranks. See the table above. Among these three projects below, you should pick project B. When the scale of cash flow of projects A and B are different, NPV and IRR tend to give conflicting ranks. From the above graph, we should pick project B

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

Health Care Finance Basic Tools For Nonfinancial Managers

Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin

5th Edition

1284118215, 978-1284118216

More Books

Students also viewed these Finance questions

Question

Explain the differences between pull and push supply chains.

Answered: 1 week ago

Question

Explain about Schema refinement in Database design?

Answered: 1 week ago

Question

Illustrate Concurrent execution of transaction with examples?

Answered: 1 week ago

Question

Divide and rule ?

Answered: 1 week ago