You have computed the NPV of a project to be $25 using expected cash flows and a
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Question:
You have computed the NPV of a project to be $25 using expected cash flows and a risk-adjusted discount rate. You are, however, concerned that you may have made errors on estimating the discount rate. Which of the following makes you feel more comfortable with taking the project, given this fear?
Group of answer choices
The project has a low IRR
The project NPV is very sensitive to changes in the discount rate
In your worst-case scenario, the project is NPV-positive.
The project has a low profitability index
The project has a long payback period
Related Book For
Spreadsheet Modeling and Decision Analysis A Practical Introduction to Business Analytics
ISBN: 978-1285418681
7th edition
Authors: Cliff Ragsdale
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