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Question
If a project's net present value (NPV) is positive,:
a. Its internal rate of return is less than the firm's expected rate of return.
b. It must have multiple internal rates of return.
c. Its terminal value is less than the future value of the initial investment in the project.
d. Its initial investment is recovered on a present value basis prior to the end of the project's useful life.
e. The present value of the project's cash inflows and the present value of its cash outflows are equal when they are discounted at the firm's required rate of return.
Answer
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Related questions
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Q:
Which of the following agreements is included in the Basel III Accord (2010)?
a. Agreement to increase banks' capital (owners' equity) requirements in an effort to reduce the risk that mega bank failures will cause future financial crises
b. Agreement to put restrictions on the ability of the U.S. government to use taxpayers' funds to bail out large financial institutions
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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When issuing new securities, which of the following decisions is made jointly by a corporation and its investment banker?
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a. True
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a. True
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a. True
b. False
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Dual listing of a stock leads to a decrease in the marketability of the stock.
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Q:
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a. True
b. False
Q:
All firms that are publicly traded in the United States will be required to adopt the _____ in the near future.
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Q:
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c. The current ratios of both firms will be decreased.
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e. Only Ruby Company's current ratio will be increased.
Q:
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a. Firms with relatively low debt ratios have higher expected returns when business is good.
b. Firms with relatively low debt ratios are exposed to more risk compared to firms with relatively high debt ratios.
c. Firms with relatively high debt ratios have higher expected returns when business is bad.
d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.