Answer:
Multiple IRRs:
Said another way, Multiple IRRs occur when a project has more than one <em>internal rate of return.</em> The problem arises where a project has non-normal cash flow (non-conventional cash flow pattern).
Internal rate of return (IRR) is one of the most commonly used capital budgeting tools. Investors make decisions by comparing the IRR of the project under consideration with the <em>hurdle rate</em>. If the IRR is greater than the hurdle rate, the project is accepted, otherwise it is rejected. When there are more than two IRRs, it is not exactly clear which IRR to compare with the hurdle rate.
Hurdle rate is the minimum required rate of return which businesses use as a benchmark to decide whether to invest in a project or not.
<em>So a typical situation which can generate negative cashflows which can in turn lead to multiple IRRs towards the end of the project is where the conditions of investment become adverse towards the end of the project.</em>
Imagine that toward the end of the lifecycle of a project, a forecasted increase external costs such as Interest Rate, influenced by government policies translates to an erosion of the bottom line generated by the business in that year.
Period 0 1 3 3 4 5
Unconventional cash flows ($)-19,000 16,000 16,000 6,000 6,000 -52,000
The series is non-conventional cash-flow pattern, which has two sign changes. This is the range in which the net present value of the non-conventional cash flow series is positive. The multiple IRR problem poses a series problem to analysts because the decision is not obvious.
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Answer:
no carnal pregunta a alguien mas ....
Explanation:
lo siento:(
Answer: b. Flowers liquidity has improved
Explanation:
The Current ratio is calculated by dividing the current assets of a company by its current liabilities. The current assets represent the liquidity of the company as they comprise of assets like cash and marketable securities.
If the current ratio was to increase, it would mean that either the numerator (current assets) increased or the denominator (current liabilities) decreased or that both happened. There is an option for the liquidity increasing which is saying that the numerator increases so this is correct as it is in line with what could have happened.
Explanation:
the present value stock prices is equal to the present value of all future dividends of company.
Answer:
The answer is: A) Enjoying financial resources equal to or greater than those of the traditional sovereign state does not necessarily entail an acceptance of the obligations traditionally accepted by such a state.
Explanation:
The fact that corporations are now wealthier than many countries doesn´t mean that corporations will change the way they do business. A corporation basically exists to earn the largest possible profit, that is the main and final goal of every single corporation in the world (that is true for every for profit organization no matter its size). Corporations are not countries, they don´t have the same goals as governments and hopefully they will never replace them.