If the IRR of normal Project X is greater than the IRR of mutually exclusive (and also normal) Project Y, we can conclude that the firm should always select X rather than Y if X has NPV > 0.
Answer the following statement true (T) or false (F)
False
Rationale: We do not know if the cost of capital is to the right or left of the crossover point. Therefore, NPVX may be either higher or lower than NPVY.
You might also like to view...
Which of the following entries causes a decrease in assets and in net income?
a. The entry to record the payment of utilities with cash. b. The entry to record the payment of rent for three months in advance. c. The entry to record accrued wages payable. d. The entry to record revenue earned but not yet received.
Brand loyalty is a component of:
A) brand equity. B) brand awareness. C) perceived quality. D) brand associations .
What are some of the suggestions to make an effective training presentation?
What will be an ideal response?
A company can be viewed by different customers as _______________.
a. Only of high quality b. Only of low quality c. Only as being of neither high nor low quality d. Either high or low quality (depending on the customer)