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julsineya [31]
2 years ago
8

You are considering an investment project with an internal rate of return of 8.7 percent, a net present value of $393, and a pay

back period of 2.44 years. Which one of the following is correct given this information?
A. The discount rate used to compute the net present value is equal to the Internal rate of return.
B. The discounted payback period will be less than 2.44 years.
C. The required payback period must be greater than 2.44 years.
D. The discount rate used in computing the net present value was less than 8.7 percent.
E. This project should be rejected based on the net present value.
Business
2 answers:
Sveta_85 [38]2 years ago
7 0

Answer:

Hence the correct option is d) The discount rate used in computing the net present value was less than 8.7 percent.

Explanation:  

As the discount rate increases, the present value decreases, and also at IRR the present value is zero, thus the answer is:-

d) The discount rate used in computing the net present value was less than 8.7 percent

ElenaW [278]2 years ago
5 0

Answer:

D). The discount rate used in computing the net present value was less than 8.7 percent.

Explanation:

'Net Present Value' is described as the 'difference that exists between existing values of cash inflows, as well as, cash outflows for a particular time period.' This assists in evaluating the profitability of an investment and make worthy decisions regarding investment.

As per the details provided, <u>the discount rate considered for estimating the Net Present Value of the investment had been lesser than 8.7% which shows that the Net Present Value in positive i.e. $ 393.</u> However, the investment project is not beneficial at all rather it may cause losses because the required return rate is 9.5% which is actually lesser and therefore, the project would prove incompetent and it must be rejected at once. Thus, <u>option D</u> is the correct answer.

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2042 will be the year the fund drys up, based on its current level.

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kobusy [5.1K]

Answer:

Paco will have 335 dollars available for the car-loan

Explanation:

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7 0
3 years ago
Skoff Corporation is a shipping container refurbishment company that measures its output by the number of containers refurbished
puteri [66]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Refurbishing materials:

Variable cost= $600

Fixed costs= $18,800

Estimated cost= 600*35 + 18,800= $39,800

Actual cost= 600*32 + 18,800= $38,000

Refurbishing activity variance= Estimated - actual cost

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5 0
3 years ago
Bramble Corp. has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales
Alexeev081 [22]

Answer:

160,000 units

Explanation:

Step 1 : Determine the Sales Mix

Bramble : Standard

60000 : 40000

3 : 2

Step 2 : Determine the Overall Break even Point

Break even Point = Fixed Cost ÷ Contribution per unit

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Step 3 : Determine break-even point for Standards

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Thus,

Bramble Corp would sell 160,000 units of Standards at the break-even point

8 0
3 years ago
Which of the following statements is true of comparative negligence? Group of answer choices It allows a plaintiff to claim dama
Ostrovityanka [42]

The inference illustrates that the true statement about comparative intelligence is that it compares a plantiffs fault with a defendant's and reduces the damage award proportionally.

<h3>What is an inference?</h3>

It should be noted that an inference simply means the conclusion that can be deduced from the information given.

In this case, the inference illustrates that the true statement about comparative intelligence is that it compares a plantiffs fault with a defendant's and reduces the damage award proportionally.

Learn more about inference on:

brainly.com/question/25280941

#SPJ1

3 0
2 years ago
Read 2 more answers
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