Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

As the interest rate decreases, FV decreases. As compounding periods decrease, F

ID: 2722546 • Letter: A

Question

As the interest rate decreases, FV decreases. As compounding periods decrease, FV decreases. The shorter an annuity pays, the smaller is its PV. The shorter an annuity pays, the smaller is its FV. Complete the following statements. If the initial cost of a project decreases, its IRR If cash flow from assets of a project increase, its IRR If more working capital is needed in a project, its IRR If a project's required return decreases, its IRR A company's total asset turnover has decreased even while its profit margin and multiplier have stayed the same. If it keeps its plowback ratio constant, what has happened to this company's sustainable growth rate, and why?

Explanation / Answer

a) IRR increases

b) IRR increases

c) IRR decreases

d) IRR decreases