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.
举一反三
- 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.
- Compared with the net present value (NPV) method, the internal rate of return (IRR) method of evaluating investment projects:() A: is the preferred method for evaluating mutually exclusive projects. B: is not sensitive to the pattern or timing of the cash flows from the period. C: assumes that all cash flows from the project will be reinvested at the computed IRR.
- 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.
- In what way is the modified internal rate of return (MIRR) method better than the IRR method?
- Which of the following statements is FALSE? A: The payback investment rule is based on the notion that an opportunity that pays back its initial investments quickly is a good idea. B: An internal rate of return (IRR) will always exist for an investment opportunity. C: A net present value (NPV) will always exist for an investment opportunity. D: In general, there can be as many internal rates of return (IRRs) as the number of times the project's cash flows change sign over time.
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- 0
Which of the following statements is FALSE? A: The incremental IRR need not exist. B: If a change in the timing of the cash flows does not affect the NPV, then the change in timing will not impact the IRR. C: Although the incremental IRR rule can provide a reliable method for choosing among projects, it can be difficult to apply correctly. D: When projects are mutually exclusive, it is not enough to determine which projects have positive NPVs.
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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.
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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.
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Internal Rate of Return (IRR) is the discount rate which yields a zero ( ) A: Discounted Cash Flow B: Annual cash flow C: Payback period D: Net Present Value
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在金融学里，内部收益率（Internal Rate of Return，IRR ）是这样定义的：内部收益率（IRR）就是使净现值（NPV）为1的折现率