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Arte-miy333 [17]
2 years ago
7

Which of the following statements is most correct concerning a project with normal cash flows (i.e., a cash outflow in Year 0 fo

llowed by cash inflows in all subsequent years)?
a) If the NPV of a project is positive then the payback period rule will always accept the project.
b) If the NPV of a project is negative, then the profitability index of the project will always be greater than one.
c) If the profitability index of a project is greater than one, then the IRR will always be less than the project’s cost of capital.
d) If the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.
e) If the discount rate of a project is zero, then the project will always be accepted.
Business
1 answer:
Bond [772]2 years ago
7 0

Answer: D. If the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.

Explanation:

Net present value (NPV) refers to the difference that exist between the present value of the cash inflows and that of the cash outflows for a particular period of time.

The net present value is used in capital budgeting to determine if a projected investment or project will be profitable or not. For a project with normal cash flows, if the NPV of a project is zero, then the IRR of the project will be equal to the discount rate for the project.

Therefore, the correct option is D.

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<h3>What is the difference between relationship selling and consultative selling?</h3>

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If a price ceiling is not binding, thena. the equilibrium price is above the price ceiling.b. the equilibrium price is below the
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If nicotine in cigarettes is highly addictive, why would it make economic sense for producers of cigarettes to offer free sample
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Whether exchange is between individuals, firms, or countries, voluntary trade occurs because:
larisa86 [58]

Answer:

b.both parties are made better off.

Explanation:

People voluntary to trade when they will better off after the trade. Since individual or nation has different proficiency and endowment resources, the ability to produce some product will be different for each country.

For example, German people are skillful of making beer. They have efficient production. Whereas France have expertise in making perfume. It is reasonable for German people to buy perfume from France since it is cheaper and has better quality than making it themselves. On the other hand, if french want to drink beer, it is cheaper to buy from Germany. Thus, both Germany and France will be better of after the trade.

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The following cost behavior patterns describe anticipated manufacturing costs for 2013: raw material, $7.60/unit; direct labor,
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Answer: The answer is as follows:

Explanation:

Given that,

Raw material = $7.60/unit

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= 35.4

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