When using the net present value method for evaluating an investment, an increase in the required...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
When using the net present value method for evaluating an investment, an increase in the required rate of return will: Multiple Choice Make it more difficult to accept the investment. Not be a consideration because it is not used in the net present value method. Make it less difficult to accept the investment. Not affect the decision, if the length of the investment's benefits remain constant. When using the net present value method for evaluating an investment, an increase in the required rate of return will: Multiple Choice Make it more difficult to accept the investment. Not be a consideration because it is not used in the net present value method. Make it less difficult to accept the investment. Not affect the decision, if the length of the investment's benefits remain constant.
Expert Answer:
Answer rating: 100% (QA)
The Correct option would be make it more difficult t... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
In working capital management, a financial manager needs to consider: I. accounts payable II. common stock III. fixed assets IV. a long-term debt a. II and IV only b. I only c. I, II, and IV only d....
-
A project analysis using the net present value method indicates that the present value of cash inflows is $120,000, and the total amount of investment required at the start of the project is...
-
If the firms required rate of return is 14 percent, what is the net present value of the following project? Year Cash Flow 0 .......... $(75,000) 1 .......... 50,000 2 .......... 40,000
-
Consider the pistoncylinder assembly containing a pure gas shown below. The initial volume of the gas is 0.05 m3, the initial pressure is 1 bar, and the cross-sectional area of the piston is 0.1 m2....
-
What type of situation (win/lose) is the goal of negotiation?
-
Man Demko is the loading dock supervisor for a dry cement packaging. His work crew is composed of unskilled workers who load transport trucks with bags of cement, gravel, and sand. The work is hard,...
-
Bleaker Company declares and pays its annual dividend near the end of its fiscal year. For the current year, Bleaker's dividend payout ratio was 40 percent, its earnings per common share were \(\$...
-
1. Daisy decided that the main thing she should focus on is customer satisfaction. She believed that if you did that then youd address all the other items since they drive customer satisfaction....
-
I want the background details of Disney Plus (how it was created and how the company got developed not about its content) in more than 300 word. thank you in advance.
-
George Pharmacy is a pharmaceutical salesman who has been very successful at his job in the last few years. Unfortunately, his family life has not been very happy. Three years ago, his only child,...
-
Indicate whether the following are For AGI deductions, From AGI deductions or neither. v Health savings account contribution for a self-employed person A. From AGI v Health savings account...
-
What are some approaches for creating a WBS? Why is it important to develop a good WBS?
-
A staff auditor is assigned the audit of equipment. The audit senior remarks, This is the easiest account to audit. All you have to do is vouch the major additions and disposals. The client has...
-
What are the main planning processes performed as part of project scope management?
-
The auditors program for the examination of long-term debt should include steps that require a. Verification of the existence of the bondholders b. Examination of the bond trust indenture c....
-
Discuss the relationship between project, program, and portfolio management and their contribution to enterprise success.
-
If 21% of males and 15% of females in a given population play the guitar, what is the probability that a randomly selected subject in the population plays the guitar, given that the subject is male?...
-
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
-
Meredith Grey is a regional sales representative for Dental Laboratories, Inc., a company that sells alloys created from gold, silver, platinum, and other precious metals to several dental...
-
Mid-Atlantic Cinema, Inc., runs a chain of movie theaters in the east-central states and has enjoyed great success with a Tuesday Night at the Movies promotion. By offering half off its regular $9...
-
Supersonic Industries, based in Seattle, Washington, manufactures a wide range of parts for aircraft manufacturers. The company is currently evaluating the merits of building a new plant to fulfill a...
-
Voters will tend to be _________ informed about their political choices than their private market choices, other things being equal. a. more b. equally c. less d. Any of the above are equally likely...
-
The median voter result implies that a. elections will often be very close. b. elections will usually be landslides for the same party year after year. c. elections will usually be landslides, with...
-
The amount of information that is necessary to make an efficient choice is generally _________ in the public sector than in the private sector. a. less b. more c. the same d. None of the above is...
Study smarter with the SolutionInn App