The IRR is an unpopular capital budgeting decision model because even with the advent of calculators and spreadsheets, the cumbersome calculation remains
Indicate whether the statement is true or false.
Answer: FALSE
Explanation: The IRR is very popular because with the advent of calculators and spreadsheets the cumbersome calculation is a thing of the past. [NOTE: It can also be argued that the IRR is popular because lenders understand the IRR and know that a firm with an IRR greater than the cost of borrowing is a good investment.]
You might also like to view...
List the steps in the control process.
What will be an ideal response?
Which of the following is a question that the auditor would expect to find on the production process section of an internal control questionnaire?
A. Are all releases by storekeepers of raw materials from storage based on approved requisition documents? B. Are vendors' invoices for raw materials approved for payment by an employee who is independent of the cash disbursements function? C. Are signed checks for the purchase of raw materials mailed directly after signing without being returned to the person who authorized the invoice processing? D. Are details of individual disbursements for raw materials balanced with the total to be posted to the appropriate general ledger account?
A company looking to issue debt instead of equity may want to consider debt due to favorable tax benefits
Indicate whether the statement is true or false
Which of the following is NOT a question we ask in relation to DRP in the context of sustainability?
a. What products should we make? b. When should we schedule production? c. What processes maximize both efficiency and sustainability? d. What are the minimum sustainability requirements we need to meet to enhance profitability?