Description : A project has the following cash inflows Rs.34,444; Rs.39,877; Rs.25,000; and Rs.52,800 for years 1 through 4, respectively. The initial cash outflow is Rs.104,000. Which of the following four statements ... than or equal to 14%, but less than 18%. D. The IRR is greater than or equal to 18%.
Last Answer : C. The IRR is greater than or equal to 14%, but less than 18%.
Description : Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return. B. As long as you are not dealing with ... of return is rarely used by firms today because of the ease at which net present value is calculated
Last Answer : D. The internal rate of return is rarely used by firms today because of the ease at which net present value is calculated.
Description : When operating under a single-period capital-rationing constraint, you may first want to try selecting projects by descending order of their in order to give yourself the best chance to select the mix of ... net present value (NPV) C. internal rate of return (IRR) D. payback period (PBP)
Last Answer : B. net present value (NPV)
Description : Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return. B. As long as you are not dealing with ... of return is rarely used by firms today because of the ease at which net present value is calculated.
Description : Which of the following statements is correct regarding the internal rate of return (IRR) method? A. Each project has a unique internal rate of return B. As long as you are not dealing with ... of return is rarely used by firms today because of the ease at which net present value is calculated
Description : A firm is about to undertake a project and has computed the NPV of the project using a variety of discount rates: Discount Rate used NPV 10% 130 15% 50 20% -50 What is the approximate IRR of this project? A 20% B 17.5% C 15% D 22.5%
Last Answer : B 17.5%
Description : A project has a Profitability Index of 1.30. What does it mean? A.The NPV is less than zero B.The payback period is more than one year C.That the project returns Rs 1.30 for every Re 1 invested in the project D.That IRR is 1.30 times that of the Hurdle Rate
Last Answer : C.That the project returns Rs 1.30 for every Re 1 invested in the project
Description : Which of the following is true? A. Discounted cash flow analysis is the least precise of the cash flow techniques, because it does not consider the time value of money. B. NPV is ... least precise of the cash flow analysis techniques, because it assumes reinvestment at the cost of capital.
Last Answer : C. Payback period is the least precise of the cash flow analysis techniques, because it does not consider the time value of money.
Description : Which of the following is true regarding IRR? A. IRR assumes reinvestment at the cost of capital. B. IRR is the discount rate when NPV is greater than zero. C. IRR is a constrained optimization method. D. IRR is the discount rate when NPV is equal to zero.
Last Answer : D. IRR is the discount rate when NPV is equal to zero.
Description : Which of the following statements is incorrect regarding a normal project? A. If the NPV of a project is greater than 0, then its PI will exceed 1. B. If the IRR of a project is 8%, its NPV, using ... the IRR of a project is greater than the discount rate, k, then its PI will be greater than 1.
Last Answer : D. If the IRR of a project is greater than the discount rate, k, then its PI will be greater than 1.
Description : Annual Rate of Return Calculator?
Last Answer : Annual Rate of Return CalculatorUse this calculator to determine the annual return of a knowninitial amount, a stream of deposits, plus a known final futurevalue.
Description : What is the full form of 'IRR' ? -How To ?
Last Answer : The full form of 'IRR' is Internal Rate of Return
Description : The international radio consultative committee is referred to in international radio communication as ______. A. IRCC B. ITU C. IRR D. CCIR
Last Answer : D. CCIR
Description : You must decide between two mutually exclusive projects. Project A has cash flows of - Rs.10,000; Rs.5,000; Rs.5,000; and Rs.5,000; for years 0 through 3, respectively. Project B has cash flows of -Rs ... B's NPV > Project A's NPV. D. Neither A nor B; The NPVs of both projects are negative.
Last Answer : C. B; Project B's NPV > Project A's NPV.
Description : Two mutually exclusive projects are being considered. Neither project will be repeated again in the future after their current lives are complete. There exists a potential problem though -- ... NPV technique and simply choose the highest IRR since managers are concerned about maximizing returns.
Last Answer : A. Rely on the NPV method and make your choice as it will tell you which one is best.
Description : The primary duty to enforce the provisions of RA 9298 and its IRR rests with a. The PRC b. The BOA c. The AASC d. The PRC and BOA
Last Answer : The PRC and BOA
Description : There are two income-based approaches that are primarily used when valuing a business, the Capitalization of Cash Flow Method and the ___________. a) Net Present Value Method b) IRR Method c) Discounted Cash Flow Method d) Discounted Payback Period
Last Answer : c) Discounted Cash Flow Method
Description : The internal rate of return - (1) must be less than the interest rate if the firm is to in-vest. (2) makes the present value of profits equal to the present value of costs. (3) falls as the annual yield of an investment rises. (4) is equal to the market interest rate for all the firm's in-vestment.
Last Answer : (3) falls as the annual yield of an investment rises. Explanation: The internal rate of return on an investment or project is the "annualized effective compounded re-turn rate" or discount rate ... the investment equals the net present value of the benefits (positive cash flows) of the investment.
Description : As the number of investments made by a firm increases, its internal rate of return - (1) declines due to diminishing marginal productivity. (2) declines because the market rate of interest will ... the firm for the current consumption foregone. (4) increases because the level of savings will fall.
Last Answer : (3) increases to compensate the firm for the current consumption foregone. Explanation: Internal rates of return are commonly used to evaluate the desirability of investments or projects. The higher a ... of return is greater than an established minimum acceptable rate of return or cost of capital.
Description : In case of the indivisible projects, which of the following may not give the optimum result? A. Internal Rate of Return B. Profitability Index C. Feasibility Set Approach D. All of the above
Last Answer : C. Feasibility Set Approach
Description : The internal rate of return is the discount rate for which the NPV is a) positive b) zero c) negative d) less than 1
Last Answer : b) zero
Description : Relief-from-royalty method estimates the value an asset based on the value of the royalty payments __________. a) from which the company is relieved due to its ownership of the asset b) made by the ... by the company from the useful life of the asset d) over and above the internal rate of return
Last Answer : a) from which the company is relieved due to its ownership of the asset
Description : Which method does not consider the time value of money A. Net present value B. Internal Rate of Return C. Average rate of return D. Profitability Index
Last Answer : C. Average rate of return
Description : Discounted cash flow criteria for investment appraisal does not include A. Not present value B. Benefit cost ratio C. Accounting rate of return D. Internal rate of return
Last Answer : B. Benefit cost ratio
Description : _____________ may be defined as the excess of present value of project cash inflows over that of out flows. A. Net present value technique. B. Average rate of return. C. Benefit-Cost ratio. D. Internal rate of return
Last Answer : A. Net present value technique.
Description : The internal rate of return (1) must be less than the interest rate if the firm is to invest. (2) makes the present value of profits equal to the present value of costs. (3) falls as the annual yield of an investment rises. (4) is equal to the market interest rate for all the firm’s investment.
Last Answer : falls as the annual yield of an investment rises.
Description : As the number of investments made by a firm increases, its internal rate of return (1) declines due to diminishing marginal productivity. (2) declines because the market rate of interest will fall ... firm for the current consumption foregone. (4) increases because the level of savings will fall.
Last Answer : increases to compensate the firm for the current consumption foregone.
Description : Which of the following statements regarding cash flow patterns (for time periods 0, 1, 2, 3, and 4) is correct? A. The sequence of -Rs.100, Rs.50, Rs.40, Rs.60, and Rs.50 is a non-conventional cash ... -Rs.50, Rs.50, Rs.70, Rs.60, and -Rs.150 potentially has at most two internal rates of return.
Last Answer : B. The sequence of -Rs.100, Rs.600, -Rs.1,100, Rs.600, and Rs.20 potentially has a maximum of two internal rates of return.
Description : Do you know of a currency calculator that uses the exchange rate at an earlier date?
Last Answer : answer:I've seen one. I wanted to see how the value of euros relative to American dollars had changed since I bought some. I found it by some persistent Googling: as I got warmer, I picked up key terms and ... took a while, but I can at least tell you that I did it and therefore that it can be done.
Description : Marginal Tax Rate Calculator?
Last Answer : Marginal Tax Rate CalculatorKnowing your income tax rate can help you calculate your taxliability for unexpected income, retirement planning or investmentincome. This calculator helps you estimate your average ... that this calculator uses the 2010preliminary tax tables subject to change by the IRS.
Description : Blended Rate Mortgage Calculator?
Last Answer : Blended Rate Mortgage CalculatorThe high price of homes has many buyers trying to get 100% ornear 100% financing. One option is to acquire two mortgages. Thiscalculator helps you determine the effective, or ... would pay if you use a first and a second mortgage tofinance the purchase of your home.
Description : APR Calculator for Adjustable Rate Mortgages?
Last Answer : APR Calculator for Adjustable Rate MortgagesUse this calculator to determine the Annual Percentage Rate(APR) of your Adjustable Rate Mortgage (ARM). Knowing your APR canhelp you compare different ARMs with different fees and terms.
Description : Where to find an interest rate calculator?
Last Answer : Yes you can find in the internet, that many website will give you interest rate calculator for make calculation for you finance its like amazon and www.ybonline.co.uk
Description : Why You Should Use a Mortage Rate Calculator to Plan Your Home Purchase?
Last Answer : Making the decision to purchase your first home can be a major milestone in your life, and it is something that you are probably feeling pretty excited about. However, you have to take this decision ... rates. With a mortgage rate calculator, you can determine if you are truly getting a good deal.
Description : Is there a heart rate calculator for running?
Last Answer : I think what you are looking for is a heart rate MONITOR. You calculate what your target heart rate should be using a formula then the monitor helps you keep track of your heart rate.
Description : Why is my age important when I use a heart rate calculator?
Last Answer : You average heart rate is based on your age. In young babys and childern there hearts beat faster than an adults. Same with teenagers they average heart rate would be different than that of an adults.