What does a negative net present value (NPV) indicate? a) The project is profitable.b) The project is not viable.c) The project’s return is equal to the discount rate.d) The project has no cash inflows. I need help in this .
Q: I need help in this question What is the primary goal of corporate finance?A. Minimizing taxesB.…
A: The correct answer is:C. Maximizing shareholder valueExplanation:The primary goal of corporate…
Q: Don't use chatgpt! A bank offers 2% interest per month. Annual rate is:A) 12%B) 18%C) 24%D) 20% need…
A: If the bank quotes 2% per month as a nominal rate, then the annual nominal rate is simply2% × 12 =…
Q: The image is blurr please comment i will write values. please dont Solve with incorrect values…
A: The information given:Net income = $600,000Total debt = $2.5 millionDebt ratio = 45%We are asked to…
Q: No AI solution What is the full form of EMI?A) Equal Monthly IncomeB) Equated Monthly InstallmentC)…
A: EMI stands for Equated Monthly Installment, which refers to the fixed monthly payment made by a…
Q: 5. Calculate the return on equity (ROE) for a company with net income $150,000 and equity $750,000.
A: Return on Equity (ROE) formula:ROE = Net Income ÷ EquityGiven:Net Income = $150,000Equity =…
Q: What is the internal rate of return (IRR)? A) The discount rate that makes the NPV of a project zero…
A: The correct answer is:A) The discount rate that makes the NPV of a project zeroLong…
Q: Fast solution no ai no ChatGPT..???
A: To calculate EMI under the flat rate system, the formula is:EMI = (Principal + Total Interest) /…
Q: The formula (Cash cycle + accounts payable period) correctly defines the operating cycle.…
A: Before we can answer the question, we need to understand what each term means:Cash Cycle: Also known…
Q: What does the term "liquidity" refer to in finance? A) The ability to generate profitB) The ability…
A: Explanation:In finance, liquidity refers to how quickly and easily an asset can be converted into…
Q: dear expert I need help in this question with good method.
A: Note:Level term life insurance provides coverage for specific term (15 years in this case), pays the…
Q: What does the term "working capital" refer to?A) Long-term investments of the companyB) Total assets…
A: The correct answer is:C) Current assets minus current liabilitiesHere's why:Working capital is a…
Q: no ai ...??? Gpt 10. If a stock's price increases from $30 to $45, what is the percentage change?
A: To calculate the percentage change in stock price, use this formula:Percentage Change = [(New Price…
Q: If you invest $1,500 at 6% for 1 year, interest is:A) $60B) $90C) $75D) $80
A: Let's solve this directly.Given:Principal (P) = $1,500Interest rate (r) = 6% or 0.06Time (t) = 1…
Q: Which of the following is the most appropriate metric for determining a company's profitability?A)…
A: The correct answer is: A) Return on Assets (ROA)Why:Return on Assets (ROA) shows how efficiently a…
Q: Please correctly answer...???!!! Solve
A: To calculate Return on Equity (ROE), we use the DuPont Identity, which breaks ROE into three…
Q: If you invest $1,000 at an annual interest rate of 5% for 2 years, how much will you have at the end…
A: To calculate the amount at the end of the investment using simple interest, we use the formula:A =…
Q: Which of the following ratios is used to measure a company’s profitability?A. Current RatioB. Quick…
A: C. Return on Equity (ROE)ROE measures a company's profitability by showing how much profit is…
Q: What is the monthly payment on a $12,000 loan at 6% annual interest, to be repaid over 1 year? A)…
A: Step 1: Use the Loan Payment FormulaPMT = P × [r(1 + r)^n] / [(1 + r)^n - 1]Where:P = 12,000 (loan…
Q: The time value of money concept is based on the idea that:A. Money loses value over timeB. Money…
A: The correct answer is:B. Money today is worth more than the same amount in the futureExplanation:The…
Q: How does corporate governance of a not-for-profit business vary from corporate governance of a…
A: **1. Purpose and Mission**- **Not-for-Profit**: The central mission is to fulfill a *social,…
Q: Which of the following describes the capital structure of a firm?A) The mix of debt and equity used…
A: The correct answer is:A) The mix of debt and equity used to finance its operationsCapital structure…
Q: 1. If a stock's price increases from $50 to $60, what is the percentage change?need help!!!
A: To calculate the percentage change, use this formula:Percentage Change = (New Price - Old Price) ÷…
Q: 9. A company’s stock price increased from $120 to $144 in a year. What is the rate of return? A)…
A: Rate of Return=(Ending Price−Beginning Price)/Beginning Price×100Substituting the valuesRate of…
Q: Which of the following is an example of a derivative instrument?a) Stocksb) Bondsc) Futures…
A: The correct answer is:c) Futures contractsExplanation:A derivative instrument is a financial…
Q: A stock pays an annual dividend of $3 and is currently priced at $60. What is the dividend yield?
A: The dividend yield is the annual dividend payment divided by the current stock price, expressed as a…
Q: Dont use Ai. Which of the following best describes diversification?A) Investing in multiple…
A: Explanation: Diversification is a risk management strategy that involves spreading investments…
Q: A stock just paid a $2 dividend and is expected to grow at 5% annually. If the required rate of…
A: To calculate the stock's value using the Gordon Growth Model (Dividend Discount Model with constant…
Q: Which of the following issues is/are NOT considered a part of short-term finance? Question 5…
A: Short-term finance, also known as working capital management, involves financial decisions that…
Q: No AI The weighted average cost of capital (WACC) is used to:A) Measure the profitability of a…
A: Explanation:The Weighted Average Cost of Capital (WACC) is a financial measure that represents the…
Q: dont use AI.I really need help in this problem. Thank you!!
A: We are given:Total debt = $4,910Debt-equity ratio = 0.52The debt-equity ratio is calculated…
Q: Which of the following is an example of a capital budgeting decision?A) Deciding how much inventory…
A: Explanation:Capital allocating conclusions include judging and selecting general grant projects that…
Q: Finance question 7. A person buys a stock for $100 and sells it for $120. What is the gain?A) $10B)…
A: Step-by-Step Solution Step 1: Understand what "gain" means Gain is the amount of money you earn…
Q: What is the net present value (NPV) of a project that costs $5,000 and returns $2,000 per year for 3…
A: To calculate the Net Present Value (NPV), use the formula:NPV = (Cash Flow / (1 + r)^1) + (Cash Flow…
Q: What does a beta coefficient of 1.5 indicate for a stock?A) The stock is less volatile than the…
A: The correct answer is C) The stock is 50% more volatile than the market.A beta coefficient of 1.5…
Q: What does the internal rate of return (IRR) tell you about a potential investment? Rx
A: The Internal Rate of Return (IRR) is the discount rate that makes the Net Present Value (NPV) of all…
Q: Your traditional IRA account has stock of GFH, which cost $2,000 20 years ago when you were 50 years…
A: Part B: Taxes Owed If You Withdraw the Funds from Traditional IRAWith a Traditional IRA, all…
Q: No ai!! answer it A portfolio's risk can be reduced by: A) Investing in a single stock B)…
A: Explanation:Diversification reduces risk by spreading investments across a variety of assets (such…
Q: Which of the following best defines the term "capital structure"?A) The way a company raises its…
A: Capital structure is a critical financial concept that refers to how a company finances its overall…
Q: The time value of money concept is based on the idea that: a) Money loses value over time.b) A…
A: The correct answer is b) A dollar today is worth more than a dollar tomorrow.The time value of money…
Q: Don't use chatgpt!! 7. The concept of diversification helps in:A) Reducing the overall risk of an…
A: The correct answer is: A) Reducing the overall risk of an investment…
Q: You invest $1,000 in a stock, and after 2 years, it grows to $1,200. What is the annual return?
A: To find the annual return, we can use the Compound Annual Growth Rate (CAGR) formula:CAGR=(Beginning…
Q: If a company's net income is $300,000 and shares outstanding are 150,000, what is EPS? no ai ..???
A: Current Ratio:Formula:Current Ratio = Current Assets ÷ Current LiabilitiesGiven:Current Assets =…
Q: Which of the following is a short-term source of financing?A) Corporate bondsB) Trade creditC)…
A: Explanation:A) Corporate bonds - These are typically long-term sources of financing.B) Trade credit…
Q: dear expert!!Please don't solve with incorrect values . i will give unhelpful.
A: Given data:Average invested assets = 600,000 dollarsSales = 200,000 dollarsIncome = 140,000…
Q: The Green Mortgage Company has originated a pool containing 75 ten-year fixed interest rate…
A: 1. Price Green Should Obtain on Date of IssuanceWe are pricing a mortgage pool of 75 ten-year…
Q: You invest $5,000 for 3 years at an annual interest rate of 6%. The interest is compounded annually.
A: To calculate the future value of your investment, you can use the compound interest formula:FV = P ×…
Q: What is the time value of money concept based on?A) Money loses value over time due to inflationB)…
A: The correct answer is:B) Money today is worth more than money in the futureExplanation:The time…
Q: Need step by step approach hrlp
A: Future value FV = 10,000 Time t = 5 yearsAnnual interest rate r = 8% = 0.08 Daily compounding:…
Q: 1. If a stock's price increases from $50 to $60, what is the percentage change? no ai gpt..??
A: To calculate the percentage change in a stock's price, we use the following formula: LET'S SOLVE…
Q: No Ai What is the term for a bond's fixed interest payment? a) Yieldb) Couponc) Principald) Discount
A: The correct answer is b) Coupon.The term "coupon" refers to the fixed interest payment made by a…
What does a negative net present value (NPV) indicate?
a) The project is profitable.
b) The project is not viable.
c) The project’s return is equal to the discount rate.
d) The project has no cash inflows.
I need help in this .
Step by step
Solved in 2 steps
- Which of the following is a disadvantage of the IRR project evaluation method? Question 5Select one: a. It does not take into account the time value of money. b. If there are negative cash flows after positive cash flows, there may be zero or multiple internal rates of return. c. It does not make adequate allowance for risk. d. It focuses on accounting profit rather than cash flow as the source of value.3. Which 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. Answer One drawback of the regular payback for evaluating projects is that this method does not properly account for the time value of money. If a project's payback is positive, then the project should be rejected because it must have a negative NPV. The regular payback ignores cash flows beyond the payback pericod, but the discounted payback method overcomes this problem. If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company will tend to reject projects with relatively short lives and accept long-lived projects, and this will cause its risk to increase over time. The longer a project's payback period, the more desirable the project is normally considered to be by this criterion.Which of the following is a disadvantage of the IRR project evaluation method? Select one: a. It does not take into account the time value of money. b. If there are negative cash flows after positive cash flows, there may be zero or multiple internal rates of return. c. It does not make adequate allowance for risk. d. It focuses on accounting profit rather than cash flow as the source of value.
- Disadvantage of the payback method include: Answer choices are below: A) does not consider cash flows past payback period. B) the most common version does not account for time value of money. C) has a bias against long-term projects such as research and development and new product launches. D) all of the above.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 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.
- 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.Which of the following statements is CORRECT? a. If a project with normal cash flows has an IRR greater than the cost of capital, the project must also have a positive NPV. b. If a project with normal cash flows has an IRR less than the cost of capital, the project must have a positive NPV. c. If the NPV is negative, the IRR must also be negative. d. A project's MIRR can never exceed its IRR. e. If Project A's IRR exceeds Project B's, then A must have the higher NPV.Which one of the following statements is correct concerning the payback rule? a. The payback period is computed using the present value of each of the cash flows. b. The rule says that you should accept a project if the payback period is greater than 1.0. c. The rule is biased in favour of long-term projects. d. The rule is flawed because it ignores all cash flows after some arbitrary point in time.
- 6.2 (q3) Which of the following is NOT a disadvantage of the Payback Period project evaluation method? Select one: a. It does not focus on cash flow as the driver of value. b. It has an arbitrary cut-off point set by management. c. It does not adequately allow for risk. d. It fails to take account of the time value of money.You have determined the profitability of a planned project by finding the present value of all the cash flows from that project. Which of the following would cause-the project to look less appealing in terms of the present value of those cash flows? O The discount rate decreases. The cash flows are extended over a longer period of time, but the total amount remains the same. O The discount rate increases. O Statements B and C are correct. O Statements A and B are correct.Why the payback method is often considered inferior to discounted cash flow in capital investment appraisal? Select one: a. It is more difficult to calculate b. It does not calculate how long it will take to recoup the money invested c. It only takes into account the future income of a project d. None of the option e. It does not take account of the time value of money
