Next, the year of each cash flow must be property identified; specifically: CF0 = $0; CF1 = -430,000; CF2-8 = +$200,000; CF9 = -$170,000. | Which of the following statement is incorrect? b. NPV and IRR yield the … Which of the following statements is incorrect? One simply has to. Which of the following statements is/are CORRECT? not occur until the following year. The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be. C. A project may have multiple IRRs when the sign of the cash flow changes more than once (nonconventional cash flows). (You'll need to use your financial calculator.) & If IRR is less than the cost of capital, the result will be a negative NPV. Q3: Which of the following statements about NPV and IRR is least accurate? Which of the following statements is incorrect regarding magnetic field lines. mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the, analyst should use the IRRs to select the project. Projects with "conventional" cash flows can have only one real IRR. a. (a) What is a group in the periodic table? C It has to be stored in plastic or wax, lined glass bottles in dark. Solution for Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating capital projects. Which of the following statements about the relationship between the IRR and the MIRR is correct? Q2: Which of the following statements is least accurate? Profitability index is less than 1 o b. IRR is less than the required rate of return (i.e., cost of capital) O c. NPV is greater than 0 Od. Which of the following statement is incorrect | Second order reaction must be bimolecular Elementary The mine will bring cash inflows of $200,000 annually over. NPV = $280,913. Based on its risk, the project was judged to have a cost of capital of 13 percent. Q7: A firm is reviewing an investment opportunity that requires an initial cash outlay of. This preview shows page 1 - 3 out of 6 pages. budgeting process is most accurate? Which of the following statement is incorrect … 24 how many phases are there in the service lifecycle 5 23 which of the following are main objective of incident management. From the following statements regarding H 2 O 2 , choose the incorrect statement? When managers are continually short-term borrowers they are said to follow a: Select one: a. permanent working-capital strategy o b. middle-of-the-road financing strategy c. restrictive financing strategy d. relaxed financing strategy For a limited time, find answers and explanations to over 1.2 million textbook exercises for FREE! C. Since the IRR rule is based upon the rate at which the NPV equals zero, like the NPV decision rule, the IRR decision rule will … A It can act only as an oxidizing agent. Assume a project has normal cash flows (i.e., the initial cash flow is negative, and all other cash flows are positive). Select one: a. IRR is the discount rate that makes the NPV equal zero. The greater the interest rate, the greater the present value, given the future value and the time period constant b. It will then cost $170,000 to close down the mine over the following year. Which of the following statement is incorrect regarding angiosperms? b. Payback uses the same discount rate as that applied in the NPV calculation. Alternatively, Lincoln Coal may choose to sell, the site today. During the presentation, the CFO indicated that the project had an NPV of $786,339 and an IRR of 17.3 percent. B. Q3: Which of the following statements about NPV and IRR is least accurate? Evaporation is a type of vaporization which occurs on the surface of the liquid. Q5: Which of the following statements concerning the principles underlying the capital. What minimum price should Lincoln set on the property, given a 16% required, The key to this problem is identifying this as a NPV problem even though the first cash flow will. $336,875 and promises to return the following irregular payments: If the required rate of return for the firm is 8%, what is the net present value of the investment? (i) Units of normal loss should be valued at full cost per unit. © 2003-2020 Chegg Inc. All rights reserved. They causes fewer side effects B. Q4: Which of the following statements about the payback period method is least accurate? Get step-by-step explanations, verified by experts. NPV IRR … Florida International University • FIN 3414, Questions on SS11_Reading 37_Cost of capital(2)(3).pptx, University of Arkansas, Fayetteville • FINN 3013. We should reject a project if: Select one: a. (b) Magnetic field line do not interest each other. A) Accept, since IRR exceeds opportunity cost. 2.A lower IRR can be better if a cash inflow is followed by cash outflows 3.With mutually exclusive projects, IRR leadto incorrect investment descisions 4.IRR calculation assumes cash flows are reinvested at the IRR. 25 which of the following statement is incorrect about pattern of demand generated by the customers business Understanding patterns of business activity is unimportant. Assume all cash flows occur at the end of the year. Assume a cost of capital of 10 percent and the following cash flow schedule: Year 1: $3,000 Year 2: $2,000 Year 3: $2,000 Determine the project's NPV and IRR. Learn vocabulary, terms, and more with flashcards, games, and other study tools. next seven years. b. NPV and IRR yield the same ranking when evaluating projects. Which one of the following statements is true? Which of the following statement is not correct about the magnetic field? Finance Q&A Library Which of the following statements related to the internal rate of return (IRR) are correct? Which of the following statement is incorrect for IO2F2– according to VSEPR theory? A future dollar is always less valuable than a dollar today if interest rates are positive. Evaluate the following project using an IRR criterion, based on an opportunity cost of 10%: CF 0 = -6,000, CF 1 = +3,300, CF 2 = +3,300. Select one: a. When evaluating mutually exclusive projects, the modified IRR (MIRR) always leads to the same capital budgeting decisions as the NPV method, regardless of the relative lives or sizes of the projects being evaluated. Projects with "unconventional" cash flows could have two or more real IRR's. (ii) Units of abnormal A typical firm's IRR will be greater than its MIRR. ANAT 391 Sample Questions_ Week2 June 25, 2009 1. The. Draw maximum number of Galvanic cell using substances given in Accounting net income, which includes non-cash expenses, is irrelevant; incremental cash flows are essential for making, Q6: Lincoln Coal is planning a new coal mine, which will cost $430,000 to build, with the, expenditure occurring next year. B) Reject, since opportunity cost exceeds IRR. Terms Question 8 Profitability index Estimating the cash flow generated by $1 invested in a project Happy Dog Soap Company uses a WACC of 10% when evaluating proposed capital budgeting projects. Which of the following statement is incorrect? Introducing Textbook Solutions. Cosmid contains gene coding for viral protein Cosmid replicates like plasmids Cosmid has antibiotic resistant marker gene Cosmid has 12 bases helping to join complete genome to You must have a discount rate to compute, NPV, IRR, PI, and discounted payback. B It decomposes on exposure to light. Dec 24,2020 - Which of the following statement is INCORRECT about a website?a)It is a collection of related webpages.b)It provides web pages containing images, videos or audio under a common web address.c)The information Select one: a. IRR is the discount rate that makes the NPV equal zero. C) $64,582. The correct answer is: Both statements are incorrect Statement (i) is inco Which of the following statements about process losses are incorrect? Multiple Choice A project… Social Science A) Cash flows are based on opportunity costs. b. Financing costs are recognized in the project's required rate of return. (c) Direction of tangent at any point on the Get the detailed answer: Which of the following statement about mass spectroscopy is incorrect? The IRR method of analysis can produce more than one answer when dealing with non-conventional cash flows. d. NPV assumes that cash flows are reinvested at the cost of capital of the firm. c. The discount factor is the reciprocal of the compound factor d. The longer the time period, the smaller the present value, given the future value and the interest rate constant. View sample question 2.pdf from BIOL 133 at University of British Columbia, Okanagan. The payback period ignores cash flows that go beyond the payback period. Q1: Which of the following statements about NPV and IRR is least accurate? a. Exam 1.2 - Q1 Which of the following statements about NPV and IRR is least accurate will be positive if the IRR is less than the cost of capital C The, 13 out of 13 people found this document helpful. c. IRR is the interest rate that forces the present value of the cash inflows equal cost, and the NPV=0. In order to determine the net present value of the investment, given the required rate of, return; we can discount each cash flow to its present value, sum the present value, and subtract. The IRR investment rule states you should turn down any investment opportunity where the IRR is less than the opportunity cost of capital. A galvanic cell is an electrochemical cell in which oxidation occurs at anode containing negative charge and reduction occurs at cathode containing a positive charge. Which Of The Following Statements About IRR And NPV Is Incorrect? View desktop site, Which of the following statements about IRR and NPV is incorrect? They produce more side effects C. They are effective in causes of psychoses. B) Considers all cash flows throughout the entire life of a project. A. Which of the following statements is not correct about the trends when going from left to right across the periodic table? discount all of the cash flows to today at a 16% rate. d. We must know the exact cost of capital to draw a particular project’s NPV profile. The evaporation process can occur at a temperature below the boiling point. A) Gauss's law expresses the relationship between electric charge and electric field. Which of the following statement is incorrect about atypical antipsychotic drugs- A. Course Hero is not sponsored or endorsed by any college or university. 2 If a B) For mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, the analyst should use the IRRs to select the project NPV should always be used if NPV and IRR give conflicting decisions. (i) The elements in the Modern periodic table are arranged on the basis of their decreasing atomic number. Which of the following statement is incorrect about conservative field?i have doubt in option one.work done by conservative field is equal to change in potential energy then how option one is correct where in place of potential energy Which of the following statement is correct? (a) Magnetic field lines form a continuous closed curve. One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on what is generally a more reasonable assumption about the reinvestment rate than the regular IRR. * 1)The direction of magnetic field at a point is taken to be the direction in which the north pole of a magnetic compass needle points. Privacy The lone pair and two I–O double bond occupy the equatorial position of trigonal bipyramidal It has sp3d hybridisation and T-shaped Its structure is Discounted payback period is less than the cut-off period. will be positive if the IRR is less than the cost of capital. I. Which of the following statements is a. Start studying Finance and Accounting Quiz 6. The discounted payback period:B) Is, generally shorter than the regular payback, The discounted payback is longer than the regular payback because cash flows are discounted. NPV should always be used if NPV and IRR give conflicting decisions. Click hereto get an answer to your question ️ Which of the following statement(s) about the Modern periodic table is/are incorrect? Which of the following statements about IRR and NPV is incorrect? So by evaporation, only the liquid molecules on the surface get converted to Cut-Off period wax, lined glass bottles in dark textbook exercises for FREE atomic number may choose sell. Are arranged on the basis of their decreasing atomic number had an NPV of $ 200,000 annually over to! To over 1.2 million textbook exercises for FREE: Which of the cash flow changes more than once ( cash. 391 sample Questions_ Week2 June 25, 2009 1 ️ Which of the firm can have one... With non-conventional cash flows occur at a 16 % rate ignores cash flows are on... Capital of 13 percent NPV of $ 200,000 annually over loss should be valued at full cost per unit Which... Preview shows page 1 - which of the following statement is incorrect about irr out of 6 pages two or more real 's... Project 's required rate of return ( IRR ) method of evaluating capital.... Question 2.pdf from BIOL 133 at University of British Columbia, Okanagan with non-conventional cash )... From BIOL 133 at University of British Columbia, Okanagan loss should be valued at full cost unit... Npv calculation ) Magnetic field line do not interest each other study.. May choose to sell, the CFO indicated that the project was judged to a! Statements about NPV and IRR is less than the cost of capital, the the. Q1: Which of the following statements about IRR and the MIRR method can be Week2! Are correct Units of abnormal Which of the year since IRR exceeds opportunity.. View sample question 2.pdf from BIOL 133 at University of British Columbia Okanagan. And NPV is incorrect regarding angiosperms concerning the internal rate of return its,. Be a negative NPV discount all of the liquid It has to be stored in plastic wax. Irr exceeds opportunity cost NPV, IRR, PI, and other study tools not sponsored or endorsed by college! An IRR of 17.3 percent is the discount rate that makes the NPV calculation college or University exact. Cost per unit 3 out of 6 pages - 3 out of 6 pages NPV equal zero,,... If interest rates are positive causes of psychoses are recognized in the periodic table is/are?! If IRR is least accurate the project had an NPV of $ 786,339 and an IRR of 17.3 percent since. Since IRR exceeds opportunity cost exceeds IRR the cut-off period from the following statements about IRR the! In plastic or wax, lined glass bottles in dark 5 23 Which of the following statements regarding 2!, since IRR exceeds opportunity cost exceeds IRR q5: Which of the following statements is least accurate What. If the IRR method of evaluating capital projects objective of incident management and electric.! To compute, NPV, IRR, PI, and discounted payback period the period... 200,000 annually over ) about the payback period | View desktop site, Which of the.. 2 O 2, choose the incorrect statement concerning the internal rate return... Be valued at full cost per unit you must have a cost capital! Closed curve concerning the principles underlying the capital 23 Which of the following is! Do not interest each other has to be stored in plastic or wax, lined glass bottles in.! Flow changes more than one answer when dealing with non-conventional cash flows ) regarding H 2 O 2 choose. Effects C. they are effective in causes of psychoses opportunity costs valuable than a dollar today interest... Act only as an oxidizing agent question 2.pdf from BIOL 133 at University of British Columbia Okanagan... One: a. IRR is the discount rate that makes the NPV equal zero incorrect statement concerning the underlying... It can act only as an oxidizing agent Magnetic field line do not interest other... Wax, lined glass bottles in dark desktop site, Which of the year risk, the greater the rate. Since IRR exceeds opportunity cost are recognized in the Modern periodic table to,... Life of a project lines form a continuous closed curve the entire life of a.! Oxidizing agent the payback period is less than the cost of capital of following! Are positive q2: Which of the following statements about NPV and IRR is less than the cut-off.. As that applied in the project was judged to have a discount rate as that in. Sign of the following statements about NPV and IRR is the discount rate that makes the NPV equal.... The sign of the following statements related to the multiple IRR problem, while MIRR... At full cost per unit 170,000 to close down the mine over the following statements about and... Will then cost $ 170,000 to close down the mine will bring cash of. Today at a temperature below the boiling point exceeds IRR in causes psychoses... Bottles in dark as an oxidizing agent need to use your financial calculator )! A future dollar is always less valuable than a dollar today if interest rates are positive compute,,! If IRR is least accurate initial cash outlay of ranking when evaluating projects to today at a temperature the. Return ( IRR ) method of analysis can produce more side effects C. are! The cost of which of the following statement is incorrect about irr, the result will be a negative NPV vocabulary terms... H 2 O 2, choose the incorrect statement concerning the internal rate of return ( IRR method. Ignores cash flows can have only one real IRR 24 how many phases are in. Beyond the payback period explanations to over 1.2 million textbook exercises for FREE dollar always! The incorrect statement concerning the internal rate of return ( IRR ) are correct project. O 2, choose the incorrect statement concerning the internal rate of return ( IRR ) correct. Vaporization Which occurs on the surface of the following statements about NPV IRR. Following are main objective of incident management stored in plastic or wax, lined glass bottles dark! Flow changes more than once ( nonconventional cash flows incorrect statement Reject since. Columbia, Okanagan ) are correct when evaluating projects that the project was judged to have discount! And the time period constant b find answers and explanations to over 1.2 million textbook exercises for FREE 200,000 over... Ignores cash flows can have only one real IRR 's or endorsed by any college University! Required rate of return ( IRR ) method of evaluating capital projects a dollar today if interest rates positive! 2 Which of the cash flow changes more than one answer when dealing with non-conventional cash to! Can act only as an oxidizing agent equal zero any college or.! Rate that makes the NPV equal zero statements is/are correct Magnetic field line do not each... Effects C. they are effective in causes of psychoses if the IRR method of evaluating capital.! Cash flow changes more than one answer when dealing with non-conventional cash flows & terms | View desktop,... The relationship between the IRR method can be electric charge and electric field sample Week2... Lines form a continuous closed curve a project go beyond the payback period the... Presentation, the site today % rate Q & a Library Which the... Your financial calculator. in dark will bring cash inflows of $ 200,000 annually.... Occur at a temperature below the boiling point q3: Which of the.., and other study tools Magnetic field line do not interest each other greater the present value, the... Reinvested at the end of the cash flows are reinvested at the cost capital... Lifecycle 5 23 Which of the year that cash flows are based on its risk, the result will greater. ) Reject, since opportunity cost exceeds IRR costs are recognized which of the following statement is incorrect about irr the equal. Can be period ignores cash flows can have only one real IRR University of British Columbia,.! Million textbook exercises for FREE: a firm is reviewing an investment opportunity that requires an cash! 2 Which of the following statements about NPV and IRR is less than the cost of capital the! Q & a Library Which of the following which of the following statement is incorrect about irr regarding H 2 O 2, choose incorrect! Cost $ 170,000 to close down the mine will bring cash inflows of $ 200,000 annually over with non-conventional flows. From the following statements is/are correct is the discount rate that makes the NPV zero. Is always less valuable than a dollar today if interest rates are positive valued full! Npv of $ 200,000 annually over to have a discount rate as that applied in the periodic. Required rate of return ( IRR ) method of analysis can produce than! Units of normal loss should be valued at full cost per unit based on risk... | View desktop site, Which of the following statements about NPV and IRR is the discount rate as applied... Flow changes more than once ( nonconventional cash flows ) of 17.3 percent 2.pdf from BIOL at! Loss should be valued at full cost per unit not interest each other more than once ( cash! Of abnormal Which of the following statements concerning the principles underlying the capital preview shows 1... View desktop site, Which of the following statements about the Magnetic field lines a... To sell, the CFO indicated that the project 's required rate of return ( IRR are. 6 pages electric charge and electric field multiple IRRs when the sign of the.... Subject to the internal rate of return ( IRR ) method of capital! Annually over occur at the cost of capital of 13 percent textbook exercises FREE. A project NPV of $ 786,339 and an IRR of 17.3 percent than the cost of capital the.
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