If the calculated NPV is negative, then which of the following must be true? O No answer text provided. O The discount rate used is equal to the IRR. O The discount rate used is less than the IRR O The discount rate used is greater than the IRR.

Q: None

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A:

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Q: he net present value is incorrect. Can you try the problem again?

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A:

Q: the interest is nominal is that still good for this answer?

A: Formula used is: (1+Real rate) *(1+Inflation rate)= (1+ Nominal rate)

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A: Decreasing function is which whose value go on decreasing with increase in value of variable.

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A: Solution:-When an equal amount is paid each period, it is known as annuity.

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Q: percentage method

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Q: The modified internal rate of return (MMIR) is the discount rate that forces the _____.

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A: Answer

Q: __________ is the interest rate that makes NPV equal to zero when it is used as the discount rate

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Q: State the decision criteria for each of the following. (2)

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Q: When the profitability index is equal to zero, the benefits equal the costs. True False

A: Profitability Index is defined as the ratio between the present value of cash inflow to the present…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.