ch9 revolution answers Composition

п»ї1. В A task has an initial cost of $27, 400 and a market benefit of $32, 600. Precisely what is the difference between these two beliefs called? В A. В net present benefit

B. В internal return

C. В payback value

D. В profitability index

Elizabeth. В discounted repayment

3. В The length of time a strong must hang on to recover the money they have invested in task management is called the: В A. В internal come back period.

N. В payback period.

C. В profitability period.

D. В discounted money period.

E. В valuation period.

5. В A project's average net income divided by it is average book value is known as the project's average: В A. В net present benefit.

B. В internal rate of return.

C. В accounting come back.

D. В profitability index.

At the. В payback period.

6. В The internal rate of come back is defined as the: В

A. В maximum level of go back a firm wants to make on a task. B. В rate of return a project will certainly generate in the event the project in financed exclusively with inner funds. C. В discount price that equates the net cash inflows of any project to zero. M. В discount price which causes the net present value of a task to equal zero. Elizabeth. В discount charge that causes earnings index for the project to equal no. 25. В Applying the reduced payback decision rule to any or all projects could cause: В A. В some confident net present value jobs to be rejected. B. В the most liquid projects to get rejected in favor of the less liquid tasks. C. В projects to be inaccurately accepted because of ignoring time value pounds. D. В a firm to get more long-term focused.

Electronic. В some assignments to be acknowledged which might otherwise end up being rejected underneath the payback regulation. 50. В In actual practice, managers frequently use the:

My spouse and i. average accounting return method because the info is so easily accessible. II. interior rate of return for the reason that results are simple to communicate and understand. 3. discounted repayment because of its ease.

IV. net present benefit because it is deemed by many as the best method of research. В A. В I and III only

B. В II and 3 only

C. В I, 2, and IV only

M. В II, III, and IV only

Electronic. В I, 2, III, and IV

57. В What is a net present value of the project together with the following funds flows in the event the required rate of go back is doze percent?

A. В -$1, 574. 41

B. В -$1, 208. 19

C. В -$842. 12

Deb. В $729. 09

E. В $1, 311. 16

58. В What is the net present worth of a task that has a primary cash outflow of $34, 900 and the following funds inflows? The mandatory return is definitely 15. thirty-five percent.

A. В -$3, 383. 25

B. В -$2, 784. 62

C. В -$2, 481. 53

D. В $52, 311. '08

E. В $66, 416. 75

60. В You are considering this two mutually exclusive projects. The required rate of return is usually 14. 6 percent for project A and 13. 8 percent for task B. Which project in the event you accept and why?

A. В project A; since it has the larger required price of return B. В project A; because its NPV is about $4, 900 more than NPV of project B C. В project B; because it has the major total cash inflow

Deb. В project M; because it has got the largest cash inflow in year one particular E. В project B; because it has the decrease required come back

61. В You are considering two mutually exclusive tasks with the subsequent cash flows. Which project(s) should you accept if the lower price rate is definitely 8. 5%? What if the discount charge is 13 percent?

A. В accept project A as it always has the higher NPV

B. В accept project B as it always has the higher NPV

C. В accept A for 8. 5 percent and M at 13 percent

D. В accept W at almost eight. 5 percent and A at 13 percent

E. В accept B by 8. 5 percent and not at 13 percent

sixty four. В You are thinking about two impartial projects while using following funds flows. The necessary return for both projects is 18 percent. With all this information, which of the pursuing statements is correct?

A. В You will need to accept Task A and reject Job B based on their respective NPVs. N. В You ought to accept Job B and reject Project A based on their respective NPVs. C. В You should certainly accept Task A and reject Job B depending on their respective IRRs. D. В You...

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