What is the logic behind the IRR method? According to IRR, which projects should be accepted if

Question:

What is the logic behind the IRR method? According to IRR, which projects should be accepted if they are independent? Mutually exclusive?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

See More Books

Question Posted: Oct 05, 2011 09:35 AM

See More Questions

What is the logic behind making these debts nondischargeable?
What is the logic behind the lower courts position, that a person or organization that pours alcohol has no duty to the general public?
What is the logic behind repurchase shares of common stock to distribute excess cash to the firms owners?
Consider the following NLP problem: Maximize 2Xi + X2 - 2X3 + 3XiX2 + 1X subject to the constraints (a) Set up and solve the model by using Solver. Use a starting value of zero for each decision...
What information would need to be gathered in order to assess the economy's current position within the business cycle?
Select a position within your organization or an organization that you are familiar with and research job analysis relevant to that role. What are the key elements mentioned in your sources? How does...
Describe advances in medicine that have contributed to improving the quality of patient care.
What if Johns neighbor made his promise to help reassemble the garage at the time he and John were moving it to Johns property, saying, Since you helped me take it down, I will help you put it back...
The median household income is estimated to be approximately $60,000 annually. This total may be for one or two wage- earners in the family. A typical income tax, including federal, state, social...
Given the following information, draw the project network. Compute the early, late, and slack times for the project network. Which activities on the critical path have only the start or finish of the...
Based on your judgment, what do you think the project's correlation coefficient would be with respect to the general economy and thus with returns on "the market"? How would correlation with the...
Would the projects IRRs change if the WACC changed?
Which of the following is an indirect cost? a. The cost of denim in a jeans factory b. The cost of mixing labor in a factory that makes over-the-counter pain relievers c. The cost of restriping the...
With the help of Corollary 5.7.2.2 and the Cameron-Martin formula, prove that the process $2 M_{t}^{(\mu)}-W_{t}^{(\mu)}$, where $W_{t}^{(\mu)}=W_{t}+\mu t$, is a diffusion whose generator is...
Check formula (1.5.10), by showing, e.g., that both sides satisfy the same linear SDE. Formula 1.5.10: \[\begin{equation*} \mathcal{E}(X)_{t} \mathcal{E}(Y)_{t}=\mathcal{E}(X+Y+\langle X, Yangle)_{t}...
Let $B$ and $W$ be two independent Brownian motions and $Y_{t}=a B_{t}+b W_{t}$. Prove that $\sigma\left(Y_{s}, s \leq t ight) \subset \sigma\left(B_{s}, W_{s}, s \leq t ight)$ and that the...
Let $X$ be a transient diffusion, such that \[\begin{aligned}\mathbb{P}_{x}\left(T_{0} 0 \\\mathbb{P}_{x}\left(\lim _{t ightarrow \infty} X_{t}=\infty ight) & =1, x>0\end{aligned}\] and note $s$...
Let $\mathcal{M}_{\mathbb{P}}(X)=\{\mathbb{Q} \ll \mathbb{P}: X$ is a $\mathbb{Q}$-martingale $\}$. For any convex set $\mathcal{K}$, we denote by $\operatorname{ext}(\mathcal{K})$ the set...
Segment the wind-generated power industry in a way that shows where Windspire Energy, the subject of the You Be the VC 1.1 feature, is located in the industry. How does Windspires awareness of the...
Marc Company assembles products from a group of interconnecting parts. The company produces some of the parts and buys some from outside vendors. The vendor for Part X has just increased its price by...
Use data from Appendix D (Table D-2) to estimate the minimum voltage required to electrolyze Al 2 O 3 in the Hall-Hroult process, reaction (21.25). Use f G[Al 2 O 3 (l)] = 1520 kJ mol 1 . Show that...
Donna Jamison, a 2016 graduate of the University of Florida, with 4 years of banking experience, was recently brought in as assistant to the chairperson of the board of DLeon Inc., a small food...
Laiho Industriess 2020 and 2021 balance sheets (in thousands of dollars) are shown. a. Sales for 2021 were $455,150,000, and EBITDA was 15% of sales. Furthermore, depreciation and amortization were...
Mary Jarvis is a single individual who is working on filing her tax return for the previous year. She has assembled the following relevant information: She received $82,000 in salary. She received...
When a RACI matrix is being created, what person or group of people are assign an R for responsible?
a) What is arbitrage? And what are the different types of arbitrage? B) Can arbitrage strategies be risky when price convergence is not guaranteed? Clearly describe and outline 1 real-life example to...
Explain each segments of Financial Services Industry which are the BANKS, INSURANCE, AND ASSET MANAGEMENT . Explain each. Explain the updates on the 3 segments of Financial Services Industry (banks,...

What is the logic behind the IRR method? According to IRR, which projects should be accepted if

Question:

Step by Step Answer:

IRR measures a projects profitability in the rate of return sense If a proj...View the full answer

Fundamentals of Financial Management

Students also viewed these Corporate Finance questions