题目
题目

MCD2170 - T1 - 2025 Pre-class Quiz Week 4

单项选择题

Which of the following statements is FALSE?

选项
A.a. None of these options.
B.b. The payback investment rule is based on the notion that an investment that pays back its initial investments quickly is a good idea.
C.c. Compared with the internal rate of return and NPV approach, the payback period approach is easy to calculate and understand.
D.d. Both NPV and IRR approaches consider the time value of money.
查看解析

查看解析

标准答案
Please login to view
思路分析
Let’s break down each statement to assess i......Login to view full explanation

登录即可查看完整答案

我们收录了全球超50000道考试原题与详细解析,现在登录,立即获得答案。

类似问题

Which of the following projects would be acceptable, based on the cost/benefit criteria provided? (assume a WACC of 8%) NPV of + $200 IRR of 8.5% PI of 1.1 NPV of – $700 IRR of 10.5% PI of 0.85

Economists have identified several shortcomings to capital budgeting (choosing the projects with the highest NPV, discounted at the WACC). Capital budgeting ignores all of the following except:

Casper's is analyzing a proposed expansion project that is much riskier than the firm's current operations. Thus, the project will be assigned a discount rate equal to the firm's cost of capital plus 3 percent. The proposed project has an initial cost of $17.2 million that will be depreciated on a straight-line basis over 20 years. The project also requires additional inventory of $687,000 over the project's life. Management estimates the facility will generate cash inflows of $2.78 million a year over its 20-year life. After 20 years, the company plans to sell the facility for an estimated $1.3 million. The company has 60,000 shares of common stock outstanding at a market price of $49 a share. This stock just paid an annual dividend of $1.84 a share. The dividend is expected to increase by 3.5 percent annually. The firm also has 10,000 shares of 12 percent preferred stock with a market value of $98 a share. The preferred stock has a par value of $100. The company has a 9 percent, semiannual coupon bond issue outstanding with a total face value of $1.1 million. The bonds are currently priced at 102 percent of face value and mature in 16 years. The tax rate is 33 percent. Should the firm pursue the expansion project at this point in time? Why or why not? 

Beverly's is a retail chain selling the latest fashions through its outlets located in various neighborhood malls. Clothing Galore is a wholesaler that buys from textile mills and sells to retail outlets. Beverly's has a cost of capital of 13.6 percent, while Clothing Galore's cost of capital is 17.8 percent. Both firms are considering opening a retail outlet in a gigantic new mall. Both proposals are quite similar in design and have basically the following financial features: an initial cash outlay of $2.7 million, a projected five-year life with no salvage value, and cash inflows of $845,000 a year for the life of the project. Which firm or firms, if either, should open a retail outlet in the new mall? 

更多留学生实用工具

加入我们，立即解锁 海量真题 与 独家解析，让复习快人一步！