The main reason that the NPV method is regarded as being conceptually superior to the IRR method, for the purpose of evaluating mutually exclusive investments, is that mutually exclusive projects have multiple IRRs.
Answer the following statement true (T) or false (F)
False
When evaluating mutually exclusive projects, especially those that differ in scale or timing, the NPV method should be used to determine which project should be purchased. In case of mutually exclusive projects, because only one project can be purchased, the firm must determine which project is most acceptable; that is, which project adds the greatest value to the firm. See 9-3: Comparison of the NPV and IRR Methods
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Utilitarianism's fundamental insight is that we should decide what to do by:
A. considering the moral character of individuals. B. considering the consequences of our actions. C. acting only out of a self-interest. D. following the rules, regardless of consequences.
The term _____ that literally means the description of books is sometimes used to refer to an alphabetized list of the sources used in preparing a report.?
A) ?hypothesis B) ?biography C) ?autobiography D) ?bibliography
Answer the following statement(s) true (T) or false (F)
1. Business necessity arguments must be combined with a test for job relatedness in order to be legally defensible. 2. Business necessity arguments are specifically prohibited as a defense to disparate treatment cases. 3. A Right-To-Sue notice from the EEOC gives the recipient the right to go directly to the courts with the complaint 4. Retaliation occurs in a situation where the organization takes an “adverse employment action” against an employee because the employee brought discrimination charges against the organization. 5. When an employee is put under such extreme pressure by management that continued employment becomes intolerable and, as a result, the employee quits or resigns from the organization, it is called constructive discharge.
Which of the following statements is CORRECT?
A. Since debt financing is cheaper than equity financing, raising a company's debt ratio will always reduce its WACC. B. Increasing a company's debt ratio will typically reduce the marginal cost of both debt and equity financing. However, this action still may raise the company's WACC. C. Increasing a company's debt ratio will typically increase the marginal cost of both debt and equity financing. However, this action still may lower the company's WACC. D. Since a firm's beta coefficient it not affected by its use of financial leverage, leverage does not affect the cost of equity. E. Since debt financing raises the firm's financial risk, increasing a company's debt ratio will always increase its WACC.