Indicate whether each of the following statements is true or false.The net present value method provides a direct measure of the rate of return to be expected from a capital investment project.Managers who want to know the rate of return to expect from a capital investment project should calculate the net present value.The internal rate of return for a capital investment is the rate that would produce a net present value of zero.For a capital investment project to be acceptable, the internal rate of return should be higher than the hurdle rate.A capital investment project that has a positive net present value may have an internal rate of return that is lower than the hurdle or required rate of return.
What will be an ideal response?
The net present value method provides a direct measure of the rate of return to be expected from a capital investment project. F
Managers who want to know the rate of return to expect from a capital investment project should calculate the net present value. F
The internal rate of return for a capital investment is the rate that would produce a net present value of zero. T
For a capital investment project to be acceptable, the internal rate of return should be higher than the hurdle rate. T
A capital investment project that has a positive net present value may have an internal rate of return that is lower than the hurdle or required rate of return. F
You might also like to view...
Paired comparison scaling is useful when the number of brands under consideration is limited to no more than ________
A) one B) three C) five D) seven E) ten
Describe the six major categories of hardware, and provide an example of each.
What will be an ideal response?
To prove a pattern of racketeering under RICO, at least ________ predicate acts must be
committed by a defendant within a 10-year period. A) 3 B) 1 C) 5 D) 2
The expected rate of return of an investment _____.
A. equals one of the possible rates of return for that investment B. equals the required rate of return for the investment C. is the mean value of the probability distribution of possible returns D. is the median value of the probability distribution of possible returns E. is the mode value of the probability distribution of possible returns