Filters
Question type

Study Flashcards

The internal rate of return of a capital investment


A) Changes when the cost of capital changes.
B) Is equal to the annual net cash flows divided by one half of the project's cost when the cash flows are an annuity.
C) Must exceed the cost of capital in order for the firm to accept the investment.
D) Is similar to the yield to maturity on a bond.
E) Answers c and d are correct.

F) B) and E)
G) A) and B)

Correct Answer

verifed

verified

Normal Projects Q and R have the same NPV when the discount rate is zero. However, Project Q has larger early cash flows than R. Therefore, we know that at all discount rates greater than zero, Project R will have a greater NPV than Q.

A) True
B) False

Correct Answer

verifed

verified

Showing 81 - 82 of 82

Related Exams

Show Answer