Question: The internal rate of return is computed by finding the discount rate that maximizes the difference between the present value of a project's cash outflows

The internal rate of return is computed by finding the discount rate that maximizes the difference between the present value of a project's cash outflows and the present value of its cash inflows. True or False

Step by Step Solution

★★★★★

3.45 Rating (168 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Flase Explanation The internal rate of return is computed by ... View full answer

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

1019-B-C-A-C-P-A(1187).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

answer this Which of the following statements about CPU sockets are true? (Select all that apply) Intel CPUs use LGA sockets, which are seated with a load-lever bracket or CPU tool removal kit AMD...

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....

The management of Origami Company, a wholesale distributor of beachwear products, is considering purchasing a $30,000 machine that would reduce operating costs in its warehouse by $5,000 per year. At...

You recently went to work for Allied Components Company, a supplier of auto repair parts used in the after-market with products from Daimler, Chrysler, Ford, and other automakers. Your boss, the...

The internal rate of return is computed by finding the discount rate that maximizes the difference between the present value of a project's cash outflows and the present value of its cash inflows....

True or False. The internal rate of return is computed by finding the discount rate that minimizes the difference between the net present value of a project and that projects discount rate.

1 . Decentralized firms can delegate authority and yet retain control and monitor managers' performances by structuring the organization into so-called "responsibility centers." Which one of the...

1. In the payback method, depreciation is added back to net operating income when computing the annual net cash flow. A) True B) False 2. The internal rate of return is computed by finding the...

Which of the following statements is true? The internal rate of return is computed by finding the discount rate that equates the present value of a project s cash outflows with the present value of...

Help Save & Exit Submit Which of the following statements is true? The internal rate of return is computed by finding the discount rate that equates the present value of a project's cash outflows...

McLead Corporation and Gene Corporation, two corporations of roughly the same size, are both involved in the manufacture of canoes and sea kayaks. Each company depreciates its plant assets using the...

These descriptions of organizations relate to a city government. 1. The public school district is a legally separate entity responsible for the administration of city schools and has a separate board...

What was unique about the City of New Orleans and Congo Square

A long, straight wire containing a semicircular region of radius 0.95 m is placed in a uniform magnetic field of magnitude 2.20 T as shown in Fig. What is the net magnetic force acting on the wire...

Stan Sewell paid $50,000 for a franchise that entitled him to market software programs in the countries of the European Union. Sewell intended to sell individual franchises for the major language...

A procedure for determining the thermal conductivity of a solid material involves embedding a thermocouple in a thick slab of the solid and measuring the response to a prescribed change in...

Assume that you are in the 25 percent marginal tax bracket and that you have $5,000 to invest. You have narrowed your investment choices down to California bonds with a yield of 7 percent or equally...

Thomas Magnum began operations as a private investigator on January 1, 2010. The trial balance columns of the worksheet for Thomas Magnum, P.I. at March 31 are as follows. Other data:1. Supplies on...

Describe the importance of normative approaches to ethical decision making.

LESLI CORPORATION Balance Sheet Income Statement Assets: Sales (all credit) $5,800,000 Cash $150,000 Cost of goods sold -3,000,000 Accounts receivable 450,000 Operating expense -900,000 Inventory...

Garage, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 -28,100 -28,100 1 13,500 3,850 2 11,400 9,350 3 8,750 14,300 4 4,650 15,900 Project A...

If the simple CAPM is valid, is the situation shown below possible? Possible Not possible If the simple CAPM is valid, is the situation shown below possible? Possible Not possible If the simple CAPM...