While determining the appropriate discount rate, if a firm uses a weighted average cost of capital that is unique to a particular project, it is using the Blank______. Multiple choice question. economic value added method pure play approach subjective approach security market line approach
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While determining the appropriate discount rate, if a firm uses a weighted average cost of capital that is unique to a particular project, it is using the Blank______.
economic value added method
pure play approach
subjective approach
security market line approach
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- While determining the appropriate discount rate, if a firm uses a weighted average cost of capital that is unique to a particular project, it is using the Blank______. Multiple choice question. pure play approach economic value added method subjective approach security market line approachOpportunity Cost In the context of capital budgeting, what is an NG AND CONCEPTS REVIEW 9.2 Depreciation Gjyen the choice would a firm prefer to use MACRS 9.1 opportunity cost?The third step for making a capital investment decision is to establish baseline criteria for alternatives. Which of the following would not be an acceptable baseline criterion? A. payback method B. accounting rate of return C. internal rate of return D. inventory turnover
- Help plsThe economic value added (EVA) is a performance measure based on the Blank______. Multiple choice question. risk-free rate weighted average cost of capital cost of equity expected returnThe difference between an investment's market value and its cost is known as its Blank______. Multiple choice question. net present value internal rate of return profitability index payback period
- Weighted Average Cost of Capital (WACC) theory suggests there is an optimal capital structure. Discuss this statement to include an explanation of: What is meant by ‘capital structure’. How changes in capital structure effect WACC The relationship of WACC to the market value of a company The traditional view of the optimum gearing ratio. You may find graphical illustration(s) can support your discussion.The Blank______ method is both intuitive and easy to understand. Multiple choice question. payback period net present value internal rate of return profitability indexWhich two types of investment criteria are most frequently used by managers today? Multiple Choice O O O O Internal rate of return and net present value Net present value and profitability index Net present value and payback Internal rate of return and payback Average accounting return and internal rate of return D
- Discuss two drawbacks of utilizing the weighted average cost of capital to make investment choices when making capital allocation decisions.An NPV profile plots a project’s NPV at various costs of capital, labeled "A" and "B" in the graph. A project’s NPV profile is shown as follows. Identify the range of costs (ranges labeled "A" and "B") of capital that a firm would use to accept and reject this project. A accept or reject B accept or reject The point at which the NPV profile intersects the horizontal axis represents the .Methods that ignore the time value of money in capital investment appraisal include which of the following? a. Net present valueb. Discounted payback c. Average rate of return d. All of the above
