The internal rate of return on an asset can be calculated:
A) if the return is greater than the hurdle rate.
B) if the asset's cash flows are identical to the future value of a series of cash flows.
C) if the future value of a series of cash flows can be arrived at by the annuity accumulation factor.
D) by finding a discount rate that yields a zero net present value.
E) by finding a discount rate that yields a positive net present value.
Correct Answer:
Verified
Q20: The payback period can only be used
Q21: Capital-budgeting decisions primarily involve:
A) emergency situations.
B) long-term
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Q24: Capital budgeting tends to focus primarily on:
A)
Q26: Discounted-cash-flow analysis focuses primarily on:
A) the stability
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Q30: The hurdle rate that is used in
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