Question: are these right ? Projects with a profitability Index 16 a) greater than 1 should be accepted b) less than 10 should be rejected. 19

are these right ? are these right ? Projects with a profitability Index 16 a) greater

Projects with a profitability Index 16 a) greater than 1 should be accepted b) less than 10 should be rejected. 19 c) greater than the required return should be accepted. Od) greater than should be accepted. Question 48 (2 points) Surved Assume a project has normal cash flows. All else equal, which of the following statements is CORRECT? a) A project's discounted payback increases as the cost of capital declines. b) A project's NPV increases as the cost of capital declines. O c A project's NPV increases as the cost of capital increases. O d) A project's regular payback increases as the cost of capital declines. Oe) A project's IRR increases as the cost of capital declines. Question 49 (2 points) Saved Which of the following is (are) not true? a) An annuity in which the payments occur at the beginning of the period is an ordinary annuity Ob) An annuity in which the payments occur at the end of the period is a deferred annuity O c) A level stream of regular payments that lasts for a fixed number of periods is an annuity. d) A constant cash flow which occurs at regular intervals and lasts forever is a perpetuity e) Both A and B are not true

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!