If projects are mutually exclusive, only one project can be chosen. The internal rate of return (IRR) and the net present value (NPV) methods will not always choose the same project. If the crossover rate on the NPV profile is below the horizontal axis, the methods will _<em>always_</em> agree.
NPV is the abbreviation of Net present value which is a financial metric that seeks to capture the total value of an investment opportunity.
For mutually exclusive projects, if the IRR or internal rate of return is greater than the cost of capital, you accept the project. If it is less than the cost of capital, then you reject the project.
Also, If projects are mutually exclusive, accept the one with the highest IRR or internal rate of return by assuming it is above the hurdle rate.
Therefore, the answer is always.
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Answer:
The correct answer is d) All of the above.
Explanation:
Research with a descriptive design generally uses surveys as a method of data collection, which processes the information in cross-tabulations.
Cross-tabulation is characterized by the relationship of two variables in the table, this variable can be quantitative and the other qualitative. Variables may have a weak association or have no association, but this does not affect the cross-tabulation of the data. These tables are also known as dynamic tables because of their easy use and because they can be integrated into spreadsheets.
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Answer:
<u>Solution and Explanation:</u>
<u>Evaluation for investment decisions
</u>
- Investing for Wedding
- Investing for Retirement
- Energy sector mutual fund
- General electric bond – 18 months
- Johnson & Johnson stock
- Money market shares
- General electric bond – 2.5 years
- Short term junk Bonds
- Treasury Note – 60 months
CD – 24 months= Maturity period has met the criteria for short term goal and money used for their wedding
General electric bond – 18 months=Bonds are generally Long term or short term depends upon the maturity period for this bond has only 18 months maturity period
Money market shares = This instrument is readily converted into cash at any point in time
Saving account = No obligation of any maturity period saving account is personal account
Short term junk Bonds = Short term junk bonds are for a short period of time
Energy sector mutual fund = This sector mutual fund has long term maturity period and thereafter returns in the long term
Johnson & Johnson stock = It is considered as a dividend growth stock and investor invest for high growth on the market value of the share price
General electric bond – 2.5 years = This instrument has a long term maturity period
Dow ETF ETF is retained for capital gains in the near future period but their gestation period is high
Treasury Note – 60 months = Investment for 60 months which is not suited for short term goal of investor
The three areas are; "the economy, the environment, and society".
Sustainability organizations are composed of groups of individuals that plan to propel sustainability or potentially those activities of sorting out something economically. Dissimilar to numerous business associations, sustainability associations are not restricted to actualizing sustainability methodologies which furnish them with financial and social advantages accomplished through ecological duty. For these associations or organizations, sustainability can likewise be an end in itself without additional explanations.
<span>Game theory is the study of math and
logic behind problems and cooperation. It has logical steps that can be used in
making life choices. In game theory, a dominant strategy of Nash equilibrium
exist. Nash equilibrium is reach when players choose their own dominant strategy
in no unilateral profitable deviation from any other players. In addition, no
players would take action as long as other players remain the same. Therefore,
Nash equilibrium is self-enforcing strategy. </span>