The payback period is the size of time that takes an invest to generate enough cash flows to enable the project to: A. Produce a positive yearly cash flow. B. Create a positive cash circulation from assets. C. Counter its resolved expenses. D. Offset its total expenses. E. Recoup its early stage cost.

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The inner rate that return is the: A. Discount rate that causes a project?s aftertax earnings to equal zero. B. Discount rate that results in a zero net current value for the project. C. Discount rate that outcomes in a net current value same to the project"s early stage cost. D. Price of return forced by the project"s investors. E. Project"s current market rate of return.
The net existing value: A. Decreases together the forced rate the return increases. B. Is same to the early stage investment once the inner rate that return is same to the required return. C. An approach of analysis cannot be applied to mutually exclusive projects. D. Ignores cash flows the are distant in the future. E. Is unaffected through the timing of an investment"s cash flows.
Which among the adhering to statements is correct? A. The net existing value is a measure up of revenues expressed in today"s dollars. B. The net current value is positive once the forced return over the inner rate of return. C. If the initial price of a task is increased, the net existing value that that job will also increase. D. If the inner rate that return equals the compelled return, the net present value will certainly equal zero. E. Net existing value is same to an investment"s cash inflows discounted to today"s dollars.
D. If the internal rate the return equates to the forced return, the net present value will certainly equal zero.
Which among the adhering to indicates the a project have to be rejected? assume the cash flows space normal, i.e., the early stage cash circulation is negative. A. Average accountancy return the exceeds the necessity B. Payback duration that is shorter than the requirement period C. Optimistic net existing value D. Profitability index much less than 1.0 E. Interior rate that return the exceeds the forced return
Which among the following statements is correct? A. A longer payback duration is desired over a much shorter payback period. B. The payback rule states the you have to accept a task if the payback duration is less than one year. C. The payback period ignores the time value the money. D. The payback dominance is biased in donate of permanent projects. E. The payback period considers the timing and also amount of every one of a project"s cash flows.

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Which one of the following is the primary benefit of payback analysis? A. Organization of the moment value of money ide B. Lull of use C. Research and breakthrough bias D. Arbitrarily cutoff suggest E. Permanent bias
Which one of the following methods of evaluation ignores the time value of money? A. Net current value B. Internal rate the return C. Discounted cash flow analysis D. Payback E. Benefit index
Which among the adhering to methods of analysis ignores cash flows? A. Profitability table of contents B. Payback C. Average bookkeeping return D. Modified interior rate the return E. Internal rate of return
Based ~ above the most recent survey details presented in your textbook, CFOs often tend to use which two methods of investment evaluation the many frequently? A. Payback and also net present value B. Payback and internal rate of return C. Interior rate of return and net current value D. Net current value and also profitability table of contents E. Profit index and also internal rate of return
What is the net current value the a job with the following cash flows if the discount price is 15 percent? Year/Cash Flow0/-481001/156002/289003/15200A. -$2,687.98 B. -$1,618.48 C. $1,044.16 D. $1,035.24 E. $9,593.19
What is the net existing value that a task that has actually an initial expense of $42,700 and produces cash inflows that $9,250 a year because that 9 years if the discount price is 14.65 percent?A. $798.48B. $1,240.23C. $1,992.43D. $2,111.41E. $2,470.01
13. A project has the following cash flows. What is the payback period? Year/Cash Flow0/-280001/116002/116003/65004/6500A. 2.38 yearsB. 2.49 yearsC. 2.74 yearsD. 3.01 yearsE. 3.33 years
Auto Detailers is to buy some new equipment at a price of $188,900. This equipment will it is in depreciated on a straight-line basis to a zero book value its eight-year life. The tools is intended to generate net revenue of $11,000 a year because that the an initial four years and $24,000 a year because that the last 4 years. What is the average audit rate of return?A. 15.48 percentB. 17.76 percentC. 18.09 percentD. 22.68 percentE. 18.53 percent
E. 18.53 percentAAR = <(4 ×$11,000) + (4 ×$24,000)> / 8/($188,900 + 0)/2 = .1853, or 18.53 percent
A project has actually the following cash flows. What is the internal rate that return?Year/Cash Flow0/-893001/329002/642003/5800A. 11.21 percentB. 10.47 percentC. 10.72 percentD. 8.57 percentE. 9.19 percent
D. 8.57 percentNPV = 0 = -$89,300 + $32,900 / (1 + IRR) + $64,200 / (1 + IRR)2 + $5,800 / (1 + IRR)3IRR = 8.57%
The Flour Baker is considering a project with the adhering to cash flows. Need to this job be accepted based upon its inner rate of return if the compelled return is 18 percent?Year/Cash Flow0/-490001/95002/262003/38700A. Yes; because the project"s rate of return is 7.78 percentB. Yes; because the project"s price of return is 16.08 percentC. Yes; since the project"s rate of return is 19.47 percentD. No; because the project"s rate of return is 19.47 percentE. No; because the project"s rate of return is 16.08 percent
C. Yes; since the project"s rate of return is 19.47 percentNPV = 0 = -$49,000 + $9,500 / (1 + IRR) + $26,200 / (1 + IRR)2 + $38,700 / (1 + IRR)3IRR = 19.47 percent The project have to be accepted because its IRR is higher than the forced return.
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