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- How does the size of the initial investment affect the internal rate of return on the net present value models?Which one of the following is most closely related to the net present value profile? A: Payback B: Discounted payback C: Profitability index D: Average accounting return E: Internal rate of returnWhich of the following decision criteria is the easiest to use and very popular among investors? O Payback period. O Internal rate of return. O Average accounting return. Net present value. O Discounted return on investment.
- Can you teach me all of this on how to solve a problem in each topic? Payback PeriodModified Payback PeriodNet Present ValueProfitability IndexAccounting Rate of ReturnInternal Rate of ReturnWhy are the net present value and the internal rate of return models superior to the payback period and the accounting rate of return models?Make a simple example of the following: a. Capital Gain (or Losses) b. Expected Return c. Real Return d. Risk-free Return e. Required Return f. Holding Period Return
- Explain several ways of defining the concept of rate of return on investment?Compare and contrast the risk versus expected rate of return tradeoff, the security market line, and determination of beta on this basis. Include explanation of all the constituents, namely security market line, risk measure, expected rate of return, risk-free rate of return, and market rate of return. Include hypothetical examples for better clarity. What is the weighted average cost of capital (WACC) and its significance?Define Concept about these topics1.Payback method 2.Discounted payback method 3.Net present value 4.Internal rate of return 5.Profitability Index 6.MIRR
- c) Do the Net Present Value (NPV) and internal rate of return (IRR) always agree to accept-reject decisions? And to ranking decisions? Please explain.can you draw a profit diagram of the portfolio above and state any assumptions that must be made. Also, is the cost of the portfolio positive?Describe the Methods for Finding Rate of Return?
