The profitability index is the ratio of the
A: future value of cash flows to investment.
B: net present value of cash flows to investment.
C: net present value of cash flows to IRR.
D: present value of cash flows to IRR.
A: future value of cash flows to investment.
B: net present value of cash flows to investment.
C: net present value of cash flows to IRR.
D: present value of cash flows to IRR.
举一反三
- 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.
- Present value is defined as A: future cash flows discounted to the present by an appropriate discount rate. B: inverse of future cash flows. C: present cash flows compounded into the future. D: future cash flows multiplied by the factor[img=59x27]18030eb8dae724e.png[/img].
- Present value is defined as 未知类型：{'options': ['future cash flows discounted to the present by an appropriate discount rate.', 'inverse of future cash flows.', 'present cash flows compounded into the future.', 'future cash flows multiplied by the factor[img=59x27]17de8241f780826.png[/img].'], 'type': 102}
- You have determined the profitability of a planned project by finding the present value of all the cash flows from that project. Which of the following would cause the project to look more appealing in terms of the present value of those cash flows? ( ) A: Statements a and b are correct. B: C: Statements b and c are correct. D: The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the sam E: The discount rate decreases. F: The discount rate increases.
- The ________ approach computes the differences in cash flows between two alternatives and then finds the present value of these differences.