1._____________ is the rate at which the net present value becomes zero. a. None of the options b. Accounting rate of return c. Adjusted rate of return d. Internal rate of return
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- Internal Rate of Return is the discount rate that sets NPV to 0. True or false?): i-What is limitation of Payback period, Net Present Value (NPV) and Internal rate of return (IRR). ii- What is modified IRR?Topic: Annuities due Formulas in annuities due *future value, F=C [(1+i)^n -1/i] (1+i) * present value, P=C [1-(1+i)^-n/i] (1+i) Please show how the final answer arrived.
- Which of the following is not a variable in the basic present value equation? Multiple Choice Number of payments. Future value. Discount rate. Present value. Time horizon.Question: The internal rate of return method provides a rate of return that approximates: Both the accounting rate or return and the unadjusted rate of return Neither the accounting rate of return nor the unadjusted rate of return The unadjusted rate of return The accounting rate of ReturnWhich of the following is not an advantage of the average rate of return method? a.includes the amount of income earned over the entire life of the proposal b.takes into consideration the time value of money c.emphasizes accounting income d.easy to use
- Need help with a and b as well as the last question on whether the internal rate of return is the same as discount rate[5] The internal rate of return (IRR) is the A. Hurdle rate. B. Rate of interest for which the net present value is greater than 1.0. C. Rate of interest for which the net present value is equal to zero. D. Accounting rate of return.3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,
- Which of the following is not needed to compute the present value of an investment?a. The length of time between the investment and future receiptb. The interest ratec. The rate of inflationd. The amount of the receipTAssuming no changes in other variables, which of the following would decrease ROA? B . A decrease in interest expense.1. The CAPM model can be used to derive the cost of сapital. A. Equity B. Borrowed C. Total D. Unlimited