If the net present value is positive, it signals a. that the initial investment has been recovered.

Question:

If the net present value is positive, it signals
a. that the initial investment has been recovered.
b. that the required rate of return has been earned.
c. that the value of the firm has increased.
d. all of the above.
e. both a and b.

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

Step by Step Answer:

Related Book For book-img-for-question

Cornerstones of Managerial Accounting

ISBN: 978-0324660135

3rd Edition

Authors: Mowen, Hansen, Heitger

See More Books

Question Posted: Aug 23, 2022 10:24 AM

See More Questions

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
If the firms required rate of return is 12 percent, what is the MIRR for the following project? Year Cash Flow 0 .......... $(105,000) 1 .......... 70,000 2 .......... 50,000
Indicate which project would be selected if the net present value is used Indicate which project would be selected if the internal rate of return is used Indicate which criteria you would suggest...
Data for Barry Computer Co. and its industry averages follow. a. Calculate the indicated ratios for Barry. b. Construct the DuPont equation for both Barry and the industry. c. Outline Barrys...
Following legislative initiatives from California, Canadas Minister of Transport, Infrastructure and Communities has committed the federal government to regulate the fuel consumption of new cars and...
A blow-dryer and a vacuum cleaner each operate with a voltage of 120 V. The current rating of the blow-dryer is 11 A, and that of the vacuum cleaner is 4.0 A. Determine the power consumed by (a) The...
Check whether the following can define probability distributions, and explain your answers. (a) $f(x)=\frac{x}{10}$, for $x=0,1,2,3,4$. (b) $f(x)=\frac{1}{3}$, for $x=-1,0,1$. (c)...
Consider a database used to record the marks that students get in different exams of different course offerings. a. Construct an E-R diagram that models exams as entities, and uses a ternary...
An access matrix consists of 3 domains and 4 objects. 01 02 03 04 D1 OW orx orwc X D2 D3 rx rcw rcwcxc rcx rcx orw A process in domain D can grant a right R (r, w, or x) for object O to another...
XYZ company uses a job order cost system. The following data summarize the operations related to production in July. Assume $0 starting balances. 1. Materials purchased for cash, $700,000 2....
An investment of $1,000 provides an average net income of $220 with zero salvage value. Depreciation is $20 per year. The accounting rate of return using the original investment is a. 44 percent. b....
Net present value measures a. the profitability of an investment. b. the change in wealth. c. the change in firm value. d. the difference in present value of cash inflows and outflows. e. all of the...
List and describe the three types of processes based on the way that outputs are produced. In which of these categories would you put the process types discussed earlier in this chapter?
What is a swap? Describe the mechanics of a fixed-rate swap and a floating-rate swap.
Explain how a company can use the futures market to hedge against rising interest rates.
What are the advantages and disadvantages of convertibles to issuers? To investors?
What is the difference between the initial margin and the maintenance margin on a futures contract?
You are in charge of campus recruiting at your college or university and you wish to conduct research that will assist in boosting enrollment. Explain how you will define your problem statement....
For the op amp circuit in Fig. 16.60, find v0 (t) for t > 0. Take vs = 3e5t u(t) V. 10 k 50 LF 20 k
XYZ Inc. a calendar year, accrual basis corporation, had the following items during 2021: Gross revenue from operations Cost of goods sold $420,000 ($180,000) $9,000 LT capital gain .LT capital...
Rambotix Company has two divisions, the Semiconductor Division and the X- ray Division. The X- ray Division may purchase semiconductors from the Semiconductor Division or from outside suppliers. The...
The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and...
The Customer Service Department of Door Industries Inc. asked the Publications Department to prepare a brochure for its training program. The Publications Department delivered the brochures and...
The following UML use case diagram shows the working of a Student Management System. It has a teacher and student as the two key actors. Moreover, it has five use cases that show the particular...
Suppose there are three bonds, a 15-year zero coupon bond, a 5-year zero coupon bond, and a perpetuity bond. The current yield-to-maturity is 10%. Suppose the face value of all three bonds are $1000,...
Additional Funds Needed AFN ABC Inc makes bulk purchases of ladies bags and related products. The inventories are placed in a conveniently located warehouses before shipping them to its chain of...

If the net present value is positive, it signals a. that the initial investment has been recovered.

Question:

Step by Step Answer:

Answer and Explanation If the net present value is positive ...View the full answer

Cornerstones of Managerial Accounting

Students also viewed these Business questions