When using the net present value method for evaluating an investment, an increase in the required...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
When using the net present value method for evaluating an investment, an increase in the required rate of return will: Multiple Choice Make it more difficult to accept the investment. Not be a consideration because it is not used in the net present value method. Make it less difficult to accept the investment. Not affect the decision, if the length of the investment's benefits remain constant. When using the net present value method for evaluating an investment, an increase in the required rate of return will: Multiple Choice Make it more difficult to accept the investment. Not be a consideration because it is not used in the net present value method. Make it less difficult to accept the investment. Not affect the decision, if the length of the investment's benefits remain constant.
Expert Answer:
Answer rating: 100% (QA)
The Correct option would be make it more difficult t... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
In working capital management, a financial manager needs to consider: I. accounts payable II. common stock III. fixed assets IV. a long-term debt a. II and IV only b. I only c. I, II, and IV only d....
-
A project analysis using the net present value method indicates that the present value of cash inflows is $120,000, and the total amount of investment required at the start of the project is...
-
If the firms required rate of return is 14 percent, what is the net present value of the following project? Year Cash Flow 0 .......... $(75,000) 1 .......... 50,000 2 .......... 40,000
-
Consider the pistoncylinder assembly containing a pure gas shown below. The initial volume of the gas is 0.05 m3, the initial pressure is 1 bar, and the cross-sectional area of the piston is 0.1 m2....
-
Robinson Tools has $50,000 of quick assets, $135,000 of total current assets, and $100,000 of total current liabilities prior to the following transactions. 1. Made sales on account of $10,000 2....
-
Identify the types of input validation techniques for the following inputs to the payroll system. Briefly explain the control provided by each of these techniques. a. The payroll system accessed the...
-
Show that the two-sided p-value is \(1-\hat{F}_{T}\left(\left|t^{*} ight| ight)+\hat{F}_{T}\left(-\left|t^{*} ight| ight)\), where \(\hat{F}_{T}\) is the ECDF of the randomization distribution of...
-
Suppose we put into a logical database a segment of the U.S. census data listing the age, city of residence, date of birth, and mother of every person, using social security numbers as identifying...
-
Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $645 million that must be paid in 25 years. To assess the value of the firm's stock, financial analysts want to...
-
Complete the following schedule by using the retail method to estimate ending inventory for September and October. September Cost October Retail Cost Retail Beginning inventory.74,950 112,000 Cost of...
-
ABC has 20 million shares outstanding, trading at $20 per share. ABC currently has no debt, but plans to borrow $100 million on a permanent basis. It would use the borrowed funds to repurchase...
-
Repeat Problem 13 when the corner frequency is \(0.45 \mathrm{rad} / \mathrm{sec}\) and the approximate low-frequency logarithmic magnitude is \(56.25 \mathrm{~dB}\). Data From Problem 13: The Bode...
-
Consider heat transfer through an insulated frame wall of a house. The thermal conductivity of the wall is \(0.055 \mathrm{~W} /\left(\mathrm{m} \cdot{ }^{\circ} \mathrm{C} ight)\). The wall is...
-
Show that the magnitude \(|G(j \omega)|=\frac{1}{\sqrt{\left[1-\left(\omega / \omega_{n} ight)^{2} ight]^{2}+\left(2 \zeta \omega / \omega_{n} ight)^{2}}}\) attains a maximum when...
-
The financial crisis that hit the United States first and then the world economy starting in fall 2007 meant that the future prospects of many firms looked gloomy at best for some time. Comment on...
-
LinkedIn (www.linkedin.com) is the largest and best-known social network for professionals. Many of you are probably already familiar with it. 1. Do you have a profile? If not, you might want to...
-
Asset allocation explains a large portion of a portfolio return. However, the implementation issues involved inthe asset allocation process may reduce the efficiency of the asset allocation strategy,...
-
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
-
Meredith Grey is a regional sales representative for Dental Laboratories, Inc., a company that sells alloys created from gold, silver, platinum, and other precious metals to several dental...
-
Mid-Atlantic Cinema, Inc., runs a chain of movie theaters in the east-central states and has enjoyed great success with a Tuesday Night at the Movies promotion. By offering half off its regular $9...
-
Supersonic Industries, based in Seattle, Washington, manufactures a wide range of parts for aircraft manufacturers. The company is currently evaluating the merits of building a new plant to fulfill a...
-
A balloon is launched at sea level, where the air pressure is \(100 \mathrm{kPa}\). The helium has a volume of \(1000 \mathrm{~m}^{3}\) at this altitude. What is the volume of the helium when the...
-
A balloon is at a height of \(5.0 \mathrm{~km}\) and is descending at a constant rate. The buoyancy force is directed ; the drag force is directed A. Up, up B. Up, down C. Down, up D. Down, down...
-
A balloon is launched at sea level, where the air pressure is \(100 \mathrm{kPa}\). The density in the hot-air chamber is \(1.0 \mathrm{~kg} / \mathrm{m}^{3}\). What is the density of the air when...
Study smarter with the SolutionInn App