If a project has an internal rate of return of 12% and a negative net present value, which of the following statements is true regarding the discount rate used for the net present value computation?
A) The discount rate must have been greater than 12%.
B) The discount rate must have been less than 12%.
C) The discount rate must have been equal to 12%.
D) The discount rate must have been 0%.
A
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The purpose of the purchase requisition is to
a. order goods from vendors b. record receipt of goods from vendors c. authorize the purchasing department to order goods d. bill for goods delivered
Depreciation appears in a separate line on which of the following budgets?
A) cash budget B) selling and administrative expense budget C) direct labor budget D) production budget E) overhead budget
Jack, a landlord, sells his apartment house to Bob, who knows that each of the four apartments is rented. May Bob tell the tenants to vacate and install his own tenants?
a. Yes, since he is now the owner. b. Yes, the leases terminate when Jack's ownership ends. c. No, he must wait until their leases expire. d. No, they may stay as long as they wish.
According to the clientele effect, dividend policy matters even if capital markets are perfect because
investors self-select into dividend preference groups. Indicate whether the statement is true or false