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Serggg [28]
2 years ago
9

a conflict will exist between the npv and irr methods, when used to evaluate two equally risky but mutually exclusive projects,

if the projects' cost of capital is less than the rate at which the projects' npv profiles cross. true false
Business
1 answer:
Fiesta28 [93]2 years ago
5 0

True-No conflict will exist between the NPV and IRR methods, when used to evaluate two equally risky but mutually exclusive projects, if the projects' cost of capital exceeds the rate at which the projects' NPV profiles cross.

<h3>What is NPV and IRR methods?</h3>

While the IRR approach calculates the projected percentage return, the NPV method produces the predicted dollar worth of a project.

Purpose. The breakeven cash flow level of a project is the emphasis of the IRR approach while project surpluses are the subject of the NPV method.

assistance with decisions. Since it provides a dollar return, the NPV approach delivers an outcome that serves as the basis for an investment decision. The IRR approach is not helpful in making this choice because its percentage return does not indicate to the investor how much money will be produced.

Reinvestment rate. When NPV is utilized, the firm's cost of capital is the assumed rate of return for reinvesting intermediate cash flows; when it is the internal rate of return.

To learn more about NPV and IRR methods from the given link:

brainly.com/question/21241533

#SPJ4

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) A company determines that its marginal revenue per day is given by R'(t) = 100et , R(0) = 0, where R(t) = the revenue, in doll
Vika [28.1K]

Answer:

$14038

Explanation:

The company has marginal revenue R'(t) = 100e^t. Therefore its revenue R(t) is given as;

R(t) = ∫R'(t)

R(t)= ∫ 100e^t dt =  100e^t + c

R(t) =  100e^t + c

But R(0) = 0, therefore:

R(0) =  100e^0 + c = 0

100e^0 + c = 0

100 + c =0

c = -100

Also the marginal cost per day is given by C'(t) = 140 - 0.3t

C'(t) = 140 - 0.3t

C(t) = ∫C(t) = ∫ (140 - 0.3t) dt = 140t - (0.3/2) t² + C

But C(0) = 0

C(0) = 140 (0) - (0.3/2)(0)² + c = 0

c = 0

C(0) = 140t - (0.3/2) t²

Profit P(t) = R(T) - C(T) , hence the total profit from t = 0 to t = 5 is given as:

P(t) = \int\limits^0_5 {[R'(t)-C'(t)]} \, dt =\int\limits^0_5 {([100e^t-(140-0.3t)]} \, dt=\int\limits^0_5 {100e^t} \, dt  +\int\limits^0_5 {-0.3t} \, dt  +\int\limits^0_5 {-140} \, dt  \\\\=[100e^t]_0^5+[ -140t]_0^5+[-0.3t^2/2]_0^5=[14841.316-100]+[-700]+[-3.75]=14038

The profit is $14038

7 0
3 years ago
What does the release of earnings announcements
Varvara68 [4.7K]

The release of earnings announcements and economic indicators are similar because c) both are estimated in advance by analysts.

<h3>Why are earnings announcements analyzed?</h3>

Earnings announcements help determine the value of a company and so they are analysed to help people decide if they can invest and make a capital gain.

Economic indicators are also analyzed with the goal being to predict where the economy is going and what to do about it.

The full question and options are:

What does the release of earnings announcements have in common with the release of economic indicators?

a) Both are typically released on a quarterly basis.

b) both are typically published by corporations

c) both are estimated in advance by analysts

Find out more on economic indicators at brainly.com/question/903754.

#SPJ12

3 0
2 years ago
What is the expected impact of increased security measures imposed by the federal government on airlines and consumers? Instruct
Kipish [7]

Answer:

It will increase price for consumers, as well as cost for airlines (due to increased demand & supply)

Explanation:

Markets are at equilibrium when market demand = market supply.  

If federal government imposes more safety measures on airlines & consumers. Cost for airlines rise due to increased security expenditures, so supply decreases (shifts leftwards). Customers might feel safer amidst more personal & organisational security measures, so demand increases (shifts rightwards).

Both these factors lead to increase price for consumers, as well as cost for airlines

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4 years ago
_____ involves determining everyone involved in the project or affected by it, and determining the best ways to manage relations
dimaraw [331]
The best answer to fill in the blank would be A).
5 0
3 years ago
Chuy wants to buy a new television. The television costs $1,350. Chuy decides to save the same amount of money each
worty [1.4K]

Answer: we can conclude Chuy plans to save $55 a week

Explanation:

3 0
3 years ago
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