According to the stand-alone principle, the evaluation of a project is based on the project’s Blank______ cash flows. Multiple choice question. incremental standard past total
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According to the stand-alone principle, the evaluation of a project is based on the project’s Blank______ cash flows.
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- Define “the stand-alone principle” applying in evaluating projects and discuss the types of cashflows in project evolution.A Modified Internal Rate of Return (MIRR) is a rate of return on the Blank______, not the Blank______. Multiple choice question. modified set of cash flows; project's actual cash flows internal rate of return cash flows; modified set of cash flows project's actual cash flows; internal rate of return cash flows project's actual cash flows; modified set of cash flowsWhich of the following is/are true for the average accounting return method of project analysis? I. does not need a cutoff rate II. ignores time value of money II. is based on project's cash flows IV. easily obtainable information for computation Multiple Choice I only I, II, II, and IV
- A Modified Internal Rate of Return (MIRR) is a rate of return on the Blank______, not the Blank______. Multiple choice question. project's actual cash flows; modified set of cash flows modified set of cash flows; project's actual cash flows internal rate of return cash flows; modified set of cash flows project's actual cash flows; internal rate of return cash flowsThe internal rate of return (IRR) of a project must be compared to its Blank______ in order to determine the acceptability of the project. Multiple choice question. real rate of return required rate of return profitability index accounting rate of return13)
- According to the Blank______ principle, once the incremental cash flows from a project have been identified, the project can be viewed as a minifirm with its own future revenues and costs, its own assets, and its own cash flows. Multiple choice question. stand-alone walk-alone stand-and-deliver stand-withWhich of the following are the components of a project's cash flow? More than one answer may be correct. Multiple select question. Project capital spending Project operating cash flow Project sunk costs Project additions to net working capital Project interest paymentsWhich of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. a. If Project A has a higher IRR than Project B, then Project A must also have a higher NPV. b. If a project has normal cash flows and its IRR exceeds its cost of capital, then the project's NPV must be positive. c. The IRR calculation implicitly assumes that all cash flows are reinvested at the cost of capital. d. If Project A has a higher IRR than Project B, then Project A must have the lower NPV. e. The IRR calculation implicitly assumes that cash flows are withdrawn from the business rather than being reinvested in the business.
- Which of the following statements is most correct? If a project’s internal rate of return (IRR) exceeds the cost of capital, then the project’s profitability index must be positive. If Project A has a higher IRR than Project B, then Project A must also have a higher NPV. The IRR calculation implicitly assumes that all cash flows are reinvested at a rate of return equal to the IRR. Group of answer choices Only statements I and II are incorrect. None of the statements above is incorrect. Only statement II is correct. Only statement I is correct. Only statement III is incorrect.The internal rate of return method assumes that a project's cash flows are reinvested at the: Multiple Choice internal rate of return. simple rate of return. required rate of return. payback rate of return.When you are evaluating independent projects and the projects' cash flows are conventional, the IRR and NPV methods will always agree. O No answer text provided. O No answer text provided. O False True