A company should accept a project if ________. a. The NPV of the project is positive b.
Question:
A company should accept a project if ________.
a. The NPV of the project is positive
b. The NPV of the project is negative
c. The IRR of the project is positive
d. The IRR of the project is negative
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
Answer Net Present Value Decision Rule If net presen...View the full answer
Answered By
Marlon Pagsisihan
I'm working on various projects on learning platform for 2 years. Where, i had done multiple projects on financial ratios calculations, cash flow statements, Profit & loss statement, Balance sheet, Capital budgeting techniques, Net Present value calculation, Payback Period calculations, Internal Rate of Return calculations, economic order quantity, MIRR calculations & various matters.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Which 3 conditions could lead to the beginning balance of a bank or credit card reconciliation being inaccurate? A reconciled transactions payee was changed An unreconciled transactions amount was...
-
A company should accept for investment all positive NPV investment alternatives when which of the following conditions is true? a. The company has extremely limited resources for capital investment....
-
You are a financial manager of a forestry company. Your firm wants to consider selling Christmas trees seasonally for the next three years. Adjacent to the company headquarters is a parking lot owned...
-
A closely wound solenoid of 2000 turns and area of cross-section 1.5 x 10 mcarries a current of 2.0 A. It suspended through its centre and perpendicular to its length, allowing it to turn in a...
-
An octave contains twelve distinct notes (on a piano, five black keys and seven white keys). How many different eight-note melodies within a single octave can be written if the black keys and white...
-
The viscosity ? of a glass varies with temperature according to the relationship where Qvis is the energy of activation for viscous flow, A is a temperature-independent constant, and R and T are,...
-
Jason has been making equal annual payments of $7,500 to repay a college loan. He has just made an annual payment and now wants to pay off the rest of the loan immediately. He has eight payments...
-
In the chapter, we suggested that advanced information systems will automate some of the more routine purchasing activities. What are the implications for purchasing professionals? Is this a good...
-
Black Co. acquired 100% of Blue, Inc. on January 2023. On that date, Blue had land with a book value of $38,000 and a fair value of $49,000. Also, on the date of acquisition, Blue had a building with...
-
A joint survey by Parade magazine and Yahoo found that 59% of American workers say that if they could do it all over again, they would choose a different career (USA today, September 24, 2012). The...
-
Explain why a company would want to accept a project with a positive NPV and reject a project with a negative NPV.
-
According to the video, how should a company use NPV and IRR to decide whether a project should be undertaken?
-
The following selected accounts and their current balances appear in the ledger of Sombrero Co. for the fiscal year ended November 30, 2006: Instructions 1. Prepare a multiple-step income statement....
-
If any individual does not have emotional intelligence, do you believe one can be taught emotional intelligence or practice techniques that will improve their emotional intelligence? Why or why not?...
-
To deal with the rising cost of Medicare, Congressman Lancaster has proposed increasing premiums for higher-income beneficiaries further. What other Medicare reform options have been discussed?...
-
To retire in style takes careful, early planning with an understanding of budgets, taxes, and investments. Identify the first three steps of retirement planning. 1.Define retirement goals....
-
While agencies possess considerable discretion in the rulemaking process, if Congress has not delegated authority to an agency, any action taken by an agency, including rulemaking, will be found...
-
The company is paying corporation tax at the rate of 30%. The cost of the company's ordinary equity capital has been estimated at 18% pa. What is the company's weighted average cost of capital for...
-
A random sample of n observations is selected from a population with standard deviation = 1. Calculate the standard error of the mean (SE) for these values of n: a. n = 1 b. n = 2 c. n = 4 d. n = 9...
-
Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...
-
Lets get some more experience with the six steps in applied regression. Suppose that youre interested in buying an Apple iPod (either new or used) on eBay (the auction website) but you want to avoid...
-
Carlos inherits 100 shares of Allied Corporation stock from his father. The stock cost his father $8,000 and had a $25,000 FMV on the date of his fathers death in 2017. The alternate valuation date...
-
Which of the following pairs of independent variables would violate Assumption VI? (That is, which pairs of variables are perfect linear functions of each other?) a. Right shoe size and left shoe...
-
A team that costs $60,000 will allow a profit of $27,000 per year for 5 years. The useful life of the asset is 5 years and its residual value is 0 for accounting purposes (fixed depreciation). The...
-
Use Burnside's theorem to solve the following problems. (You receive little credit if you use other methods.) a) Determine the number of circular permutations of a multiset S = {R, R, R, B, B, B}....
-
A company develops a system to produce a new product. An investment of $300,000 is required to assemble the equipment and it is estimated that the residual value in the market is $80,000. For...
Study smarter with the SolutionInn App