Assuming the cost of capital is 10.0%, which of the following results indicates the investment should NOT be made?
A) The net present value is less than 0.0
B) The benefit cost ratio is less than 1.0
C) The internal rate of return is 8%
D) The payback period is 10 years
E) All of the above indicate the investment should not be made
Correct Answer:
Verified
Q10: Net present value
A) Divides investment by average
Q11: Which of the following investment evaluation methods
Q12: The decision rule for net present value
Q13: Assuming the cost of capital is 10.0%,
Q14: Assuming the cost of capital is 10.0%,
Q16: Capital investments are handled differently than operating
Q17: Which of the following is not TRUE
Q18: The type of capital expenditures that requires
Q19: The riskiest type of capital expenditures are
A)
Q20: The interest rate used to discount cash
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