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Will rate all answers thanks!! 16. Which statement(s) below is/are accurate? (For purposes of this question, you may assume that any and all projects being
Will rate all answers thanks!!
16. Which statement(s) below is/are accurate? (For purposes of this question, you may assume that any and all projects being evaluated have conventional cash flows.) A. With accept-reject decisions, the NPV and IRR approaches always result in identical decisions. B. With ranking decisions, the NPV and IRR approaches always result in identical decisions. C. With ranking decisions, the NPV and IRR approaches never result in identical decisions. D. Both "A" and "B" are true. E. Both "A" and "C" are true. (Questions 17-19) In estimating the cash flows for a capital budgeting decision, some items are considered, and others are ignored. On your answer sheet, for each question number please answer A if the indicated item is considered, and B if the indicated item is ignored: 17. "Spillover" effects 18. Sunk costs 19. Opportunity costs (Questions 20 22) Some of the problems associated with the Internal Rate of Return (IRR) measure can be overcome by using the Modified Internal Rate of Return (MIRR) measure instead. For each issue below, determine whether it is TRUE or FALSE to say that the MIRR measure "fixes the problem. If True, indicate A on your answer sheet. If "False," indicate B on your answer sheet. 20. The problem of having IRR and NPV rank-order projects differently, if those projects' cash flows have different timing patterns. 21. The problem of multiple or nonexistent IRRs when we have a nonconventional cash flow pattern. 22. The problem of having IRR and NPV rank-order projects differently, if those projects are of different sizes/magnitudes. 8Step by Step Solution
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