13. The internal rate of return method assumes that all cash inflows can be imme

Question

13. The internal rate of return method assumes that all cash inflows can be immediately reinveste in new projects at the A. Cost of the corporation's common stock B. Hurdle rate. C. Internal rate of return. D. Cost of the corporation's long-term debt If the profitability index for a project is equal to 1.13, then the project's A. Net present value is positive. B. Internal rate of return of the project is less than the hurdle rate. C. Payback period is less than 5 years. D. Accounting rate of return is greater than the project's internal rate of return. 14. 15. Which of the following statements is TRUE regarding the concept of the time value of money A. A dollar paid today is worth the same as a dollar paid in the future B. A dollar received today is worth the same as a dollar received in the future. C. A dollar received today is worth more than a dollar received in the future. D. A dollar received today is worth less than a dollar received in the future. Ifa proposed investment's net present value (NPV) is positive, then A. The investment provides a retun greater than the hurdle rate B. The investment provides a return less than the hurdle rate. The present value of the cash outflows must have been greater than the present value of the cash inflows. he investment should be rejected as unacceptable.

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Paticulars Q13 C Internal rate of return Q14 A Net present value is positive since Profitability index greater than 1 means positive NPV Q15 C A dollar received today is worth more than the dollar received in future Q16 A The investment provides a return greater than the hurdle rate

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