If interest rates are ______, ______ projects will have positive NPVs.   Question 8 options:   higher; more   lower; fewer   lower; more

Which of the following statements are true? I At higher discount rate, a project is more likely to be rejected. II A project is acceptable if the IRR = 8% while the cost of capital = 5%. III IRR does not account for time value of money. Group of answer choices 1. All of the above. 2. I and II 3. I and III 4. II and III

Which of the following statements is correct?       A. If the NPV of a project is greater than 0, its PI will equal 0.       B. If the IRR of a project is 0%, its NPV, using a discount rate, k, greater than 0, will be 0.       C. If the PI of a project is less than 1, its NPV should be less than 0.       D. None

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You are considering Project A, with the following information (Assume all statistics given are correct):                         Economy         Probability of                                Rates of Return      ____                        Condition      State Occurring         Project A            Market              T-Bill                        Bad                            0.2                       3.0%                 0.0%                4.82%                        Average                     0.4                      10.0%                8.0%                4.82%                        Good                         0.4                      15.0%              12.0%                4.82%                           Expected return                                  10.6%                 8.0%                4.82%                        Standard deviation                              5.72%              4.38%                  0%                        Correlation Coefficient between…

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.

QUESTION 7 Which of the following statements is correct? a. When there are two mutually exclusive projects, the project with the highest NPV should be chosen. D. The payback period criterion properly considers the time value of money. OC. The IRR method correctly ranks mutually exclusive projects. d. Since investors prefer more return and less risk, one will never hold a dominated asset in the risk-return sense. In other words, if asset A has a higher expected return and lower standard-deviation than asset B, then investors would only hold asset A in their optimal portfolio. e. When an investment project is evaluated today, the spending that occurred in the last year has to be included in the NPV analysis.

2. There are two projects, X and Y. the following probability distribution for the projects are given below PROJECT X PROJECT Y Return Prob. Return Prob. Pessimistic 8% 0.25 7% 0.35 Most Likely 16 0.50 13 0.45 Optimistic 21 0.25 22 0.20 Which project should you take based on Risk and Return?why?

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Which of the following statements is true? Multiple Cholce There Is no correlation between net present value and Internal rate of return. A project with a positive net present value will have a discount rate that Is greater than the Internal rate of return. None of the statements are true Glven several projects with positive net present values, the company should choose the project with the hlghest net present value. A project with a positive net present value will have a discount rate that Is less than the Internal rate of return.