MCQ 09-50 When cash flows from a ... When cash flows from a project are non-conventional, there may be ___________ on the project. Multiple Choice Multiple NPVs. Negative NPV. Multiple IRRs. Non-existent IRR. Negative profitability index.

MCQ 09-50 When cash flows from a ... When cash flows from a project are non-conventional, there may be ___________ on the project. Multiple Choice Multiple NPVs. Negative NPV. Multiple IRRs. Non-existent IRR. Negative profitability index.

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter11: Cash Flow Estimation And Risk Analysis

Section11.1: Identifying Relevant Cash Flows

Problem 3ST

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Question

MCQ 09-50 When cash flows from a ...

When cash flows from a project are non-conventional, there may be ___________ on the project.

Multiple Choice

Multiple NPVs.
Negative NPV.
Multiple IRRs.
Non-existent IRR.
Negative profitability index.

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Question 1 Which of the following statements is False regarding the payback period method: OA. Use as a tool in making screening decision. OB. The Cash flows after the payback period are ignored. OC. Shorter payback period indicates a more profitable project. O D. Consider the time value of money.
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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.
Multiple IRRs arise when considering projects with normal cash flows with positive NPV with negative NPV with only positive cash flows with non-normal cash flows
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22. If a capital budgeting project’s cash flows are not normal, the internal rate of return (IRR) method should be used to make the investment decision. Group of answer choices True False
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Please dont provide solution in an image based solution thank you
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