The IRR and NPV rules always lead to identical decisions if:
a. The project's cash flows are conventional.
b. The projects are mutually exclusive.
c. The projects are independent.
d. Both (a) and (b).
e. Both (a) and (c).
One investment opportunity should be rejected if its NPV is ________ and its IRR is ________.
a. Positive; Positive.
b. Positive; Greater than the required return.
c. Negative; Negative.
d. Negative; Smaller than the required return.
e. Negative; Greater than the required return.
Solution Preview
The IRR and NPV rules always lead to identical decisions if:
a. The project's cash flows are conventional.
b. The projects are mutually exclusive.
c. The projects are independent.
d. Both (a) and (b).
e. ...
Solution Summary
Answers 2 multiple choice questions on NPV and IRR.
... There are three problems. Solutions to these problems depict the methodology to calculate NPV, IRR and incremental IRR. Please show all work for all questions. ...
... C. What is the projected NPV? D. What is the projected IRR? ... What are the two projects net present value, assuming the cost of capital is 10 percent? 5 percent? ...
... Hope you like the response. Thank you. Excel file contains calculations of NPV ,IRR and payback period. ...NPV: Net present value = sum of present value of ...
Evaluating Projects using NPV, IRR & PI. Please see attached file. ... What is the NPV, IRR and PI of each project and which project should they accept and why? ...
... You will be calculating 1) Depreciation, 2) Tax Rate, 3) Taxable Income, 4) NOPAT, 5) Net Cash Flow, and the two major calculations- NPV & IRR. ...
...Value (NPV): at cost of capital $ 194,746 See excel for using discount rate (with risk premium) $ 130,203 Assume th 21.33% Internal rate of return (IRR): ...
