The IRR method assumes that ________. a. Cash flows are reinvested at the firms cost of attracting
Question:
The IRR method assumes that ________.
a. Cash flows are reinvested at the firm’s cost of attracting funds when they are received
b. Cash flows of a project are never reinvested
c. Cash flows are reinvested at the internal rate of return when they are received
d. The NPV of a project is negative
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
c Cash flows are reinvested at the internal rate of return when they are received The IRR method is ...View the full answer
Answered By
BillClinton Muguai
I have been a tutor for the past 5 years. I have experience working with students in a variety of subject areas, including computer science, math, science, English, and history. I have also worked with students of all ages, from elementary school to college. In addition to my tutoring experience, I have a degree in education from a top university. This has given me a strong foundation in child development and learning theories, which I use to inform my tutoring practices.
I am patient and adaptable, and I work to create a positive and supportive learning environment for my students. I believe that all students have the ability to succeed, and it is my job to help them find and develop their strengths. I am confident in my ability to tutor students and help them achieve their academic goals.
0.00
0 Reviews
10+ Question Solved
Related Book For
Question Posted:
Related Video
Internal rate of return is a method of calculating an investment’s rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk.
Students also viewed these Business questions
-
The IRR evaluatioan method assumes that cash flows from the project are reinvested at the same rate equal to the IRR. However, in reality the reinvested cash flows may not necessarily generate a...
-
1. Which of the following statements about IRR and NPV is incorrect? a. NPV and IRR yield the same ranking when evaluating projects. b. NPV assumes that cash flows are reinvested at the cost of...
-
Multiple Choice Questions 1. NPV is calculated by using a. The required rate of return. b. Accounting income. c. The IRR. d. The future value of cash flows. e. None of these. 2. Using NPV, a project...
-
You would like to design a product to sell to shopping malls that tells them more about the behaviours of their customers. The system would use cameras to track customers as they walk from store to...
-
Suppose that ten people, including you and a friend, line up for a group picture. How many ways can the photographer rearrange the line if she wants to keep exactly three people between you and your...
-
A hypothetical AX type of ceramic material is known to have a density of 2.65 g/cm3 and a unit cell of cubic symmetry with a cell edge length of 0.43 nm. The atomic weights of the A and X elements...
-
In planning for your retirement, you would like to withdraw $60,000 per year for 10 years. The first withdrawal will occur 20 years from today. a. What amount must you invest today if your return is...
-
For Problem 16-16, develop upper and lower control limits for the range. Do these samples indicate that the process is in control?
-
Code the correct SQL statements to change the Emp_LastName from "Smith" to "Thomas" for the Emp_ID 5432 Code the correct SQL statements to COUNT all of the employees in department 12345 Code the...
-
Sherron, who is single, purchased a house to use as rental property on April 1, 2008, for $300,000. He moved into the house on June 1, 2018, and used it as a personal residence until August 1. 2019....
-
Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient LED fixtures. This will save the company $4,000 per year in electricity costs. The company...
-
How would the numbers in your Excel spreadsheet change because of the COVID-19 pandemic? Create an NPV profile for Tokyos Olympic Games given the changes that were caused by the pandemic.
-
Explain why it is so difficult to directly measure the impact of advertising on sales. What factors may inhibit this determination?
-
Describe how the seven basic tasks of strategic police management in the community policing era are implemented in a law enforcement agency in your area. Give examples of at least three tasks that...
-
Explain how a positive r-value will make FV = PV(1+)" have a base that is greater than 1. Explain how a negative r-value will make FV = PV(1+)" have a base that is between 0 and 1. Explain how a...
-
How do the requirements of being a 'faithful follower' of Christianity change depending on the Christian denomination? Provide some examples. Where do you think influence of Christian religion is...
-
With injunctions for torts, courts won't enforce an injunction requiring an act of great taste, skill or judgment because taste, skill or judgment are too subjective and hard to enforce. Please give...
-
On May 2, 2022, a first draft of U.S. Supreme Court Justice Alito's majority opinion in Dobbs v. Jackson Women's Health Organization was leaked to Politico which published the draft opinion. Do the...
-
The normal daily human potassium requirement is in the range of 2000 to 6000 milligrams (mg), with larger amounts required during hot summer weather. The amount of potassium in food varies, but...
-
Determine the optimal use of Applichem's plant capacity using the Solver in Excel.
-
Describe the three steps required to implement activity-based management.
-
How does activity-based management differ from activity-based costing?
-
What is the difference between a value-added activity and a non-value-added activity? Provide two examples of non-value-added activities for each of the following: a. Fast-food restaurant b. Clothing...
-
Our facility uses 2 5 0 0 of an item over a year. This item is purchased from a supplier 1 1 0 kms away. The following is known about the item Holding cost of the item is: $ 1 . 5 0 Order cost: $ 1 8...
-
Note - Guidelines for Doing an Impact Assessment ( HBS ) Becoming a Better Corporate Citizen ( Canvas / Readings / Class 0 8 ) How to Make Sustainability Every Employee's Responsibility ( HBS )...
-
Credit - explain the benefits and drawbacks of having credit cards. What are the major credit reporting agencies in the U.S.? What is a FICO score? Explain how your credit may impact your financial...
Study smarter with the SolutionInn App