A project has a discounted payback period that is equal to the required payback period. Given this information, the project:   Multiple Choice   will still be acceptable if the discount rate is increased.   must have a zero net present value.   must have a profitability index that is equal to or greater than 1.0.   must have an internal rate of return equal to the required return.   will not be acceptable under the payback rule.

Which of the following statements is correct regarding the payback method? Takes account of differences in size among projects.   If a project’s payback is positive, then the project should be accepted because it must have a zero NPV.   Ignores cash flows beyond the payback period.   Has an objective, market-determined benchmark for making decisions.   Directly account for the time value of money.

What will happen to the internal rate of return (IRR) of a project if the discount rate is decreased from 8% to 6%? Select one: a. We cannot determine the direction of the effect on IRR from the information provided. b. The change in discount rate will not affect IRR. c. IRR will always increase.  d. IRR will always decrease.

Which of the following would cause a project to have a lower net present value, thereby making the project less appealing?         A. The discount rate increases       B. The cash flows are extended over a longer period of time.       C. The investment cost decreases without affecting the expected income and life of the project.       d. The cash flows are accelerated and the project life is correspondingly shortened.

Which of the following statement is correct Select one: a. A project is accepted when profitability index will be greater than one b. All statements are correct c. A project is accepted when net present value is greater than zero d. A project is accepted when payback period is less than the other project

If the net present value (NPV) of a project is negative: Group of answer choices accepting the project will decrease the value of the firm. the project is acceptable. the project's discounted payback period is shorter than the useful life of the project. the internal rate of return is high than the firm's required rate of return.

Which of the following is correct?  • the shorter a projects payback period, the less desirable the project is normally considered to be by this criterion  • one drawback of the payback criterion is that this method does not take account of cash flows beyond the payback period.  • if a projects payback is postitive, then the project should be accepted because it must have a positive NPV • the regular payback ignores cash flows beyond the payback period, but the discounted payback method overcomes this problem •one drawback of the discounted payback is that this method does not consider the time value of money, while the regular payback overcomes this drawback.

A company has unlimited funds to invest at its discount rate. The company should invest in all projects having:   Multiple Choice   an internal rate of return greater than zero.   a net present value greater than zero.   a simple rate of return greater than the discount rate.   a payback period less than the project's estimated life.

When using internal rate of return for project evaluation, you can meet the following problems: A)No solution or more than one solution B)Internal rate of return can not be calculated for bonds. C)The same rule for all evaluated decisions: IRR>r D)IRR gives dijerent result than NPV

If a particular project has multiples rates of return (i.e., multiple values of IRR), it means that the project is economically more attractive as compared with a project with a single IRR. Group of answer choices True False