Which of the following statements about NPV and IRR is false?

Created: 1 month ago | Updated: 1 week ago

The discount rate that gives an NPV of zero is the project's IRR.

The IRR is the discount rate that equates the present value of the cash inflows with the present value of outflows..

For mutually exclusive projects, if the NPV method and the IRR method give conflicting rankings, you should use the IRRS to select the project.

The NPV method assumes that cash flows will be reinvested at the cost of capital while IRR rankings implicitly assume that cash flows are reinvested at the IRR.

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Which of the following would not improve the current ratio?

Created: 1 month ago | Updated: 1 week ago

Borrow short term to finance additional fixed assets.

Issue long term debt to buy inventory

Sell common stock to reduce current liabilities

Sell fixed assets to reduce accounts payable

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Determine a firm's total asset turnover (TAT) if its net profit margin is 10 percent, assets are Taka 5 millions and ROA is 20 percent.

Created: 1 month ago | Updated: 1 week ago

1.60

2.0

1.50

4.00

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A company has total assets of tk. 2,000,000; long term debt of tk. 900, 000 and its shareholders equity is tk. 900, 000. What is the company's total debt to asset ratio?

Created: 1 month ago | Updated: 1 week ago

৩১%

40%

৪৫%

৫৫%

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Which of the following you will not consider as a conflict of interest'?

Created: 1 month ago | Updated: 1 week ago

Disclosure of conflicts

Priority of transaction

Referral fees

Performance Presentation

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Which of the following is an example of an implicit cost?

Created: 1 month ago | Updated: 2 weeks ago

Dividends paid out to stockholders.

Payments made to workers who are unproductive

The uncompensated services of the spouse of a firm's owner.

All of the above are implicit costs

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Which of the following statements about NPV and IRR is false?

Related Questions

Which of the following would not improve the current ratio?

Determine a firm's total asset turnover (TAT) if its net profit margin is 10 percent, assets are Taka 5 millions and ROA is 20 percent.

A company has total assets of tk. 2,000,000; long term debt of tk. 900, 000 and its shareholders equity is tk. 900, 000. What is the company's total debt to asset ratio?

Which of the following you will not consider as a conflict of interest'?

Which of the following is an example of an implicit cost?