Title Multiple choice Description 1. The net present value (NPV) capital budgeting decision method: can be directly compared between alternatives incorporates the time value of

Title Multiple choice Description 1. The net present value (NPV) capital budgeting decision method: can be directly compared between alternatives incorporates the time value of money in the calculations is based on accounting net income indicates an acceptable capital project with a negative value 2. On a capital project, a net present value of ($250): indicates the capital project s rate of return exceeds the company s cost of capital for one project is considered superior to another project with a net present value of $500 indicates the internal rate of return would be unacceptable indicates cash outflows total $250 for the capital project 3. A 13% internal rate of return (IRR) on a capital project indicates all of the following except: the actual rate of return of all cash inflows and outflows that a 13% discount rate will result in the calculation of a net present value of zero a better indication of acceptable capital projects when there is limited capital than the net present value method an acceptable capital project if the cost of capital is 14% 4. Which of the following indicates an unacceptable capital project The internal rate of return exceeds the cost of capital. The net present value of a project is 10. The profitability index of a project is 0.97. The accounting rate of return exceeds the target rate of return.

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadline.


Click Here to Make an Order Click Here to Hire a Writer