Capital Budgeting Models Statements
Not what you're looking for?
Which one of the following is FALSE for a project whose NPV equals zero?
Answer
The project earns more than the required return.
The projects cash outflows are equal to the present value of the cash inflows.
The project will have no impact on firm value.
The IRR is equal to the required rate of return
"Your company is considering a project with the following cash flows: an immediate investment of $105,000 and cash inflows of $30,000 for 5 years (starting in year 1). If your discount rate for this project is 7%, what is the project's NPV?"
Answer
"$228,006 "
"$18,006 "
"$123,006 "
"$45,000 "
Purchase this Solution
Solution Summary
Solution determines the most appropriate option in the given cases.
Solution Preview
Which one of the following is FALSE for a project whose NPV equals zero?
Answer : The project earns more than the required ...
Education
- BEng (Hons) , Birla Institute of Technology and Science, India
- MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
- "Thank you"
- "Really great step by step solution"
- "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
- "Thanks Again! This is totally a great service!"
- "Thank you so much for your help!"
Purchase this Solution
Free BrainMass Quizzes
Paradigms and Frameworks of Management Research
This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce
Lean your Process
This quiz will help you understand the basic concepts of Lean.