Payback period - Study guides, Class notes & Summaries

Corporate Finance Exam Questions With Correct Answers a company that utilizes the MACRS system of depreciation will have a greater taxs shield in year two of a project than it would have if the firm had opted for straight-line depreciation a project has a discounted payback period that is equal to the required payback period. Given this which of the following statements must be true? The projec tmust also be acceptable under the payback rule AND The project must have a profitability inde...

Finance Final Exam - Practice Exam Questions The cost of preferred stock is computed the same as the __________ A. pre-tax cost of debt. B. rate of return on an annuity. C. after-tax cost of debt. D. rate of return on a perpetuity. E. cost of an irregular growth common stock. - Rate of return on a perpetuity Which one of the following statements concerning net present value (NPV) is most CORRECT? A. An investment should be accepted if, and only if, the NPV is exactly equal to zero...

Test Bank For Project Management in Practice 7th Edition by Jack R. Meredith, Scott M. Shafer | Complete Latest Guide. Chapter 1: The World of Project Management True/False 1. A primary purpose of forming projects is to assign the responsibility for accomplishing some organizational task to a specific person or small group. Answer: True Response: See section 1.1 Level: easy 2. One of the few similarities between project management and general management is that both exist in the well-de...

APSC 221 Question and answers already passed 2024/2025 APSC 221 Sunk costs should be included in an engineering economic analysis - correct answer False Decisional equivalence is a consequence of the ________ on the part of a decision maker among available choices. a. indifference b. market analysis c. study of general economic activity levels within an industry d. understanding - correct answer a. indifference T/F: Efficiency means achieving the organizatio...

Test Bank For Project Management in Practice 7th Edition by Jack R. Meredith, Scott M. Shafer, Complete Latest Guide. Chapter 1: The World of Project Management True/False 1. A primary purpose of forming projects is to assign the responsibility for accomplishing some organizational task to a specific person or small group. Answer: True Response: See section 1.1 Level: easy 2. One of the few similarities between project management and general management is that both exist in the well-def...

PSE 415 Midterm 2 Exam Questions & Answers 2024/2025 NPV Equation - ANSWERSSUM((CashFlow_n/(1+rate)^n))-initial investment Basic investment rule with NPV - ANSWERSAccept the project if NPV > 0 Reject the project if NPV < 0 Payback - ANSWERSlength of time required to recovery the cost of an investment have a payback period less than or equal to 2 years the project should be accepted more than 2 years it should be rejected IRR - ANSWERSprovides a single number about the mer...

Fin 202 Chap 10 Questions and Answers | Latest Update | 2024/2025 | 100% Pass A construction firm is evaluating two value-adding projects. The first project deals with building access roads to a new terminal at the local airport. The second project is to build a parking garage on a piece of land that the firm owns adjacent to the airport. If both projects are positive- NPV projects, then the firm should A) accept both projects because they are independent projects. B) select the hig...

Which attribute most accurately describes a project? - The correct answer is: Projects are finite. What is an example of how project managers apply sound management techniques? - The correct answer is: they break down a task further if it remains at the same percent completion despite reported progress. Which is an advantage of using a standardized project management model? - The correct answer is: The model is a framework that project managers can adapt to project specifics. In the projec...

Well-structured INF3708 Assignment 3 (ANSWERS) 2024 - DISTINCTION GUARANTEED. (DETAILED ANSWERS - DISTINCTION GUARANTEED!).....Case After Sarita Chatterjee graduated with a BSc in Information Systems from the University of South Africa, she was appointed as a Business Analyst at Culinary Bargain. Culinary Bargain sells coupons for use at popular South African restaurants and earns a 25% commission on each sale. For example, if Culinary Bargain sells a R200.00 meal coupon discounted by 20%, they...

a project has a discounted payback period that is equal to the required payback period. Given this which of the following statements must be true?The projec tmust also be acceptable under the payback rule AND The project must have a profitability index that is equal to or greater than 1 a project has a net present value of zero. Which one of the following best describes this project?The project's cash inflows equal its cash outflows in current dollar terms. A project has a required payb...