A capital investment’s internal rate of return ( )
A: Changes when the cost of capital changes.
B: Must exceed the cost of capital in order for the firm to accept the investment.
C: Statements c and d are correct.
D: Is similar to the yield to maturity on a bond.
E: Is equal to the annual net cash flows divided by one half of the project’s cost when the cash flows are an annuity.
A: Changes when the cost of capital changes.
B: Must exceed the cost of capital in order for the firm to accept the investment.
C: Statements c and d are correct.
D: Is similar to the yield to maturity on a bond.
E: Is equal to the annual net cash flows divided by one half of the project’s cost when the cash flows are an annuity.
举一反三
- A capital investment’s internal rate of return( ). A: Must exceed the cost of capital in order for the firm to accept the investment. B: C: Statements c and d are correct. D: Changes when the cost of capital changes. E: Is similar to the yield to maturity on a bon F: Is equal to the annual net cash flows divided by one half of the project’s cost when the cash flows are an annuity.
- Which of the following is NOT a problem associated with the internal rate of return (IRR) method for making investment decisions:（） A: IRR and NPV criteria can give conflicting decisions for mutually exclusive projects. B: if the IRR is above the firm’ s cost of capital, the project should be rejected. C: The IRR method assumes cash flows are reinvested at the investment’ s internal rate of return.
- Which of the following statements is themostaccurate description concerning the internal rate of return (IRR) method? IRR: A: is the preferred method for evaluating mutually exclusive projects. B: assumes that all cash flows from a project will be reinvested at the computed IRR. C: is sensitive to changes in the firm’s weighted average cost of capital.
- The average of a firm's cost of equity and after tax cost of debt that is weighted based on the firm's capital structure is called the: A: reward to risk ratio B: weighted capital gains rate C: structured cost of capital D: weighted average cost of capital
- Cost of capital isthe company’s cost of capital multiplied by the amount of the investment.