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.
内容
- 0
Which of the following is NOT a reason why cash flow may not equal net income? A: Amortization is added in when calculating net income. B: Changes in inventory will change cash flows but not income. C: Capital expenditures are not recorded on the income statement. D: Depreciation is deducted when calculating net income.
- 1
The value of a firm is maximized when the A: cost of equity is maximized. B: tax rate is zero. C: levered cost of capital is maximized. D: weighted average cost of capital is minimized.
- 2
Which one of the following terms is defined as the mixture of a firm's debt and equity financing? A: cash management B: cost analysis C: capital structure D: working capital management
- 3
Which of the following statement is not true? A: The initial investment in working capital is a cash outflow at the ending of the project for items such as inventories B: Working capital is recaptured at the end of the project when working capital is no longer required C: Depreciation is not a current cash outflow. D: Discounted cash flow methods automatically provide for a return of the original investment, thereby making a deduction for depreciation unnecessary
- 4
Tobby started his company with a $12,000 cash investment. Please write down the journal entry. A: Dr Cash $12,000, Cr Investment $12,000 B: Dr Investment $12,000, Cr Cash $12,000 C: Dr Cash $12,000, Cr Tobby's capital $12,000 D: Dr Tobby's capital $12,000, Cr Cash $12,000