The discounted payback method, net present value method (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), and profitability index (PI) are all consistent with the time value of money
Indicate whether the statement is true or false.
Answer: TRUE
Explanation: The IRR method is used by 75.61% of the respondents while the NPV method is used by 74.93% of the respondents. The payback method came in third at 56.74%. From these results one may conclude that some corporations use more than one method to evaluate their projects.
You might also like to view...
Which of the following options is true concerning the concealment of assets during or in contemplation of a bankruptcy?
a. Often used in divorce cases b. Often used in a planned bankruptcy c. How a bust-out is designed d. All of the above
Service ________ means that the quality of services depends on who provides them as well as when, where, and how they are provided
A) intangibility B) inseparability C) variability D) perishability E) heterogeneity
On January 1, A Plus Services has the following balances
Accounts Receivable $25,000 (debit) Bad Debts Expense $0 A Plus Services has the following transactions during January: Credit sales of $140,000, collections of credit sales of $90,000, and write-offs of $16,000. A Plus Services uses the direct write-off method. At the end of January, the balance of Accounts Receivable is ________. A) $10,286 B) $59,000 C) $24,889 D) $75,000
The cheapest form of life insurance that provides coverage for a specified time period is ________
Fill in the blank(s) with the appropriate word(s).