Question: A project is estimated to have a net present value equal to $85,000. The risk-adjusted opportunity cost of capital is 15 percent. Which of the

A project is estimated to have a net present value equal to $85,000. The risk-adjusted opportunity cost of capital is 15 percent. Which of the following statements is most correct? The projects IRR is greater than 15 percent.

(a) The projects IRR is equal to 15 percent.

(b) The projects internal rate of return (IRR) is less than 15 percent.

(d) The projects IRR is zero.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

On January 1, 2018, a machine was purchased for $90,000. The machine has an estimated salvage value of $6,000 and an estimated useful life of 5 years. The machine can operate for 100,000 hours before...

1. Which of the following statements about capital investment project scoring is most correct? A. Project scoring is a technique that quantifies the social value of a project. B. Project scoring...

Hello everyone, please could someone help me with a finances homework?. Thank you \f45. Decreasing which one of the following will increase the acceptability of a project? A. sunk costs B. salvage...

Multiple-Choice Questions 1. Net present value is calculated by using a. Accounting income. b. The required rate of return. c. The IRR. d. The future value of cash flows. e. None of the above. 2....

financial SUBDOMAINS: 325.4 COMMUNICATING EFFECTIVELY IN ORGANIZATIONS 326.1 MANAGING INTERNAL COST & CONTROLLING FINANCES 326.2 MANAGING CAPITAL & FINANCIAL ASSETS 326.4 MANAGING ENTERPRISE RISK &...

Need help with finance assignment. The questions are attached. need help for pages 8 to 18. 1. A(n) _______________ has a _______________ distribution and is best characterized by its_______________...

All multiple question, major in Hospitality management. 4. The advisors to Creative Bliss Enterprises, the Marx Brothers, ask you to join them as they interview their first potential underwriting...

Please Where s the answer about attach file?? An increase in financial leverage generally results in a higher return on equity (ROE). True False Leverage and liquidity generally rise or fall...

PLEASE COMPLETE NO LATER THAN 11/04 @8am Each question(1,2,& 3) must be a minimum of 200 words. Please EXPLAIN answers in FULL detail and make answers knowledgeable based off the attached reading,...

Please see attached Document and give answers for all. Thanks Qz 9 Firm A uses straight-line depreciation. Firm B uses MACRS depreciation. Both firms bought $75,000 worth of equipment last year that...

Which of the following statements is correct? Two of the answer choices are correct. If the constant growth rate of a stock is more than the required rate of return, the constant growth dividend...

A driver brings an automobile to a stop. If the brakes lock so that the car skids, where is the original kinetic energy of the car, and in what form is it after the car stops?

Discuss how some modern tools (e.g., CASE), techniques (e.g., JAD), and new methodologies (e.g., eXtreme Programming) help IS organizations overcome the disadvantages of the traditional SDLC...

You are a financial advisor working with new clients, Mateo and Ava Rodriguez. Mateo and Ava come to see you in need of a financial plan. They would like you to review their current financial plan to...

and ethics of solling to this retaller? a lilegal and unethical b . Ilikgul and ethical clepal and unetinical d ichal and enhal:

4.6 Summarize job design concepts.

When are internal change agents more likely to be successful as compared to external change agents? If both are involved in the same intervention, what kinds of problems could arise? How are these...

4.5 Explain what competencies and competency modeling are.