Question: 14. Why do the NPV, IRR, and PI technique sometimes rank projects differently? 20. Our firm owns property around Chicago that would be an ideal
14. Why do the NPV, IRR, and PI technique sometimes rank projects differently?
20. Our firm owns property around Chicago that would be an ideal location for the new warehouse, and since we own the land, there isn't any cash flow needed to purchase it. Do you agree or disagree with this statement? Explain.
21. Our bank will finance the product expansion project with at a loan interest rate of 10 percent. Make sure the project's cash flow estimates include this interest expense. Do you agree or disagree? Explain.
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