Suppose a firm evaluates four independent investments using only capital budgeting techniques that consider the time value of money. Which of the following statements is correct?
A. The company should purchase the one project that has the highest internal rate of return (IRR).
B. All of the capital budgeting techniques the company uses should provide the same accept/reject decisions.
C. The company should purchase the project that has the shortest traditional payback period (PB).
D. The company should purchase the one project that has the highest net present value (NPV); the other projects should not be purchased, even if their NPVs are positive.
E. The capital budgeting techniques used by the company will always agree on which project should be ranked as the best one to purchase.
Answer: B
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The average person remembers between _______% and _______% of what they hear.
a. 50%; 75% b. 25%; 50% c. 30%; 60% d. 60%; 80%
Which of the following is an example of how a calling is determined?
a. Kalil is working in the HR department at his company when a member of upper management sees some testing results and transfers him to a sales job, where he performs well. b. Kalil learns as an undergraduate that he has an aptitude and a love of sales, gets his degree in business, and pursues a job as a salesperson, where he excels. c. After moving around multiple times within a company, Kalil discovers that he can make the most money as a salesperson and settles into that role so he can better provide for his family. d. Kalil may not love his job as a salesperson, but he has a high regard for the members of his team and commits himself to helping the department exceed.
The chief duties/responsibilities of a company's board of directors, with respect to strategy-making and strategy execution, are not concerned with
A. being inquiring critics and exercising strong oversight over the company's direction, strategy, and business approaches. B. evaluating the caliber of senior executives' strategy-making/strategy-executing skills. C. instituting a compensation plan for top executives that rewards them for actions and results that serve stakeholders' interests, most especially those of shareholders. D. overseeing the company's financial accounting and financial reporting practices. E. hiring and firing senior-level executives and working with the company's chief strategic planning officer to improve the company's strategy when performance comes up short of expectations.
Order the following investments in terms of their historic returns from highest to lowest
A) stocks, bonds, Treasury bills B) Treasury bills, stocks, bonds C) bonds, stocks, Treasury bills D) bonds, Treasury bills, stocks