Select the incorrect statement concerning the internal rate of return (IRR) method of evaluating capital projects.
A. If a project has a positive net present value then its IRR will exceed the hurdle rate.
B. A project whose IRR is less than the cost of capital should be rejected.
C. The higher the IRR the better.
D. The internal rate of return is that rate that makes the present value of the initial outlay equal to zero.
Answer: D
You might also like to view...
Assessing control risk at a lower level most likely would involve:
A. reducing inherent risk for most of the assertions relevant to significant account balances. B. performing more extensive substantive procedures with larger sample sizes than originally planned. C. changing the timing of substantive procedures by omitting interim testing and performing the tests at year-end. D. identifying specific internal controls relevant to specific assertions.
Which of the following correctly pairs the type of packaging with its description?
A. primary packaging: the material that is mixed with the contents of a product B. secondary packaging: outer wrappings that envelop and protect tertiary packages C. tertiary packaging: protects products during transportation and bulk handling D. security packaging: packaging used to secure goods from theft
In the BCG Growth Share Matrix, the suggested strategy for stars is to
A. maintain position and after the market growth slows use the business to provide cash flow. B. invest large sums to gain a good market share. C. milk them to finance other businesses. D. not invest in them and to shift cash flow to other businesses.
Scenario A. Everyday Fashions Corp. is a clothing manufacturer. It has marketing, production, and finance departments, with a manager who heads each of the departments. Beatrice, the CEO, distributes the various organizational tasks to each manager by assigning authority and responsibility. Each manager has ten subordinates who are required to report to him or her. Each department works on its set of tasks in the organization. Beatrice is the top manager, followed by the department heads, and lastly the supervisors. All the managers are accountable to Beatrice alone.As CEO of Everyday Fashions Corp., Beatrice distributes work and assigns responsibility to the various department managers through the process known as
A. concentration. B. standardization. C. delegation. D. unity of command. E. span of control.