Which one of the following will decrease the net present value of a project? Group of answer choices Moving each cash inflow forward one time period, such as from Year 3 to Year 2 Increasing the value of each of the project's discounted cash inflows Decreasing the required discount rate Increasing the project's initial cost at Time 0 Increasing the amount of the final cash inflow

Which one of the following will decrease the net present value of a project? Group of answer choices Moving each cash inflow forward one time period, such as from Year 3 to Year 2 Increasing the value of each of the project's discounted cash inflows Decreasing the required discount rate Increasing the project's initial cost at Time 0 Increasing the amount of the final cash inflow

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter11: Cash Flow Estimation And Risk Analysis

Section: Chapter Questions

Problem 7MC: Calculate the project cash flows for each year. Based on these cash flows and the average project...

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Calculate the project cash flows for each year. Based on these cash flows and the average project cost of capital, what are the projects NPV, IRR, MIRR, PI, payback, and discounted payback? Do these indicators suggest that the project should be undertaken?
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You are considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash Flow -900 350 450 550 Group of answer choices 2.40 1.53 1.96 2.18 2.62
A project's present value can be decreased by, I. decreasing the required discount rate (required return) II. decreasing the amount of the final cash inflow II. increasing the project's initial cost at time zero IV. moving each of the cash inflows to a more distant time period V. increasing the value of each of the project's discounted cash inflows
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The number of years it takes to recapture a project`s initial outlay from the discounted free cash flows is called as the pay back period Select one: True False
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Which of the following statements is true? The internal rate of return is the rate of return of an investment project over its useful life. When the net cash inflow is the same every year for a project after the initial investment, the internal rate of return of a project can be determined by dividing the initial investment required in the project by the annual net cash inflow. This computation yields a factor that can be looked up in a table of present values of annuities to find the internal rate of return. Multiple Choice Only statement I is true. Only statement II is true. Both statements are true.
Which of the following statements is true regarding the payback period? Multiple Choice It measures the length of time that it takes for a project to recover its initial cost from the discounted net cash inflows that it genera It measures the length of time that it takes for a project to recover its initial cost from the net cash inflows that it generates. It measures the length of time that it takes for a project to recover its initial cost from the incremental net operating income that It measures the length of time that it takes for a project to recover its initial cost from the discounted incremental net operating it generates.
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