following statements is least accurate?( )
A: If a project is
riskier than the firm’s normal project, the firm should adjust
the project’s discount rate upward.
B: In the absence of
capital rationing, a firm should take all projects with a positive
net present value.
C: When capital is rationed, the projects with the highest IRRs should be selected.
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.
- 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.
- The project<br/>should (complete) ______ within a year.
- 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<br/>of the following statements about qualities of good information is<br/>false?() A: It should be relevant for its purposes B: It should be communicated to the right person C: It should be completely accurate D: It should be timely
内容
- 0
Which one of the following is defined as a firm's short-term assets and its short-term liabilities? A: debt B: working capital C: investment capital D: net capital
- 1
The internal rate of return (IRR) method and net present value (NPV) method of project selection will always provide the same accept or reject decision when:（） A: the projects are mutually exclusive. B: the projects are independent. C: the projects terminate within five years.
- 2
In<br/>which of the following case will a firm prefer the entry mode of a<br/>wholly owned foreign subsidiary? ( ) A: The<br/>firm has a high level of tacit knowledge B: The<br/>firm has a high level of performance certainty C: The<br/>firm has a low level of interdependence with its foreign partner D: The<br/>firm has a low level of confidence in international operation
- 3
What should a firm consider in designing a new pay system? _____ A: The<br/>value of each job alone. B: The<br/>method of calculating the pay. C: The<br/>requirements of each job. D: The<br/>labor supply and the cost of living.
- 4
Which one of the following states that the value of a firm is unrelated to the firm's capital structure? A: Capital Asset Pricing Model B: M & M Proposition I C: M & M Proposition II D: Efficient Markets Hypothesis