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.
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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.
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The term that refers to the cost that stimulates or inspires an economic decision is called INCENTIVE. Most of the type, incentives come in a form of payment or cash in the economic perspective. This gives an individual more reason to strive harder to become better in every action or task he performs.
Answer:
It will be a mistake as there are good and services which are intermediate or used in the process to produce another products therefore, there will be som wich are count twice or more.
The correct way to calcualte the Gross Domestic Product will be to measurethe<u> finishing goods and services </u>purchased to avoid this problem with intermediate goods.
Explanation:
I would choose A, because they know your situation and they know how to hopefully get you out of it.
Answer:
$790,000
Explanation:
Given that
Federal Taxable income = $750,000
Add: Deduction for state income taxes = $50,000
Less: Interest on federal obligations = $10,000
The computation of taxable income for X purposes is shown below:-
Taxable income = Federal Taxable income + Deduction for state income taxes - Interest on federal obligations
= $750,000 + $50,000 - $10,000
= $790,000