The general decision rule in Internal Rate of Return (IRR) is; Group of answer choices Accept projects with an IRR greater than the firm’s cost of capital. Accept all projects with an IRR of 1% or more. Reject all projects with an IRR greater than the firm’s cost of capital. Reject all projects with an IRR of less than 20%

An investor is consider four different opportunities, A, B, C, or D.  The payoff for each opportunity will depend on the economic conditions, represented in the payoff table below. Economic Condition Investment Poor Average Good Excellent (S1) (S2) (S3) (S4) A 50 75 20 30 B 80 15 40 50 C -100 300 -50 10 D 25 25 25 25  What decision would be made under minimax regret?

Select all  that are true with respect to the NPV rule for making capital investment decisions. Group of answer choices When done correctly, NPV directly measures expected value creation NPV ignores cash flows in the distant future NPV causes decision makers to be myopic For independent projects, all positive NPV projects should be taken, and negative NPV projects should not be taken For mutually exclusive projects, choose the project with the highest NPV

Which of the following statements are true? I At higher discount rate, a project is more likely to be rejected. II A project is acceptable if the IRR = 8% while the cost of capital = 5%. III IRR does not account for time value of money. Group of answer choices 1. All of the above. 2. I and II 3. I and III 4. II and III

Which of the following is FALSE regarding various methods of project analysis? Both NPV and IRR consider the time value of money. Average Accounting Return ignores the time value of money. Payback focuses on liquidity. O Profitability Index is able to rank projects in the situation of capital rationing. () Payback considers the time value of money. Next Page Page 17 of 3 Previous Page Submit Quiz O of 30 questions saved

Select all that are true with respect to the payback period for making capital investment decisions. Group of answer choices The payback period is the amount of time it takes for a project to generate breakeven income The payback period is the amount of time it takes for a project's cumulative cash flows to become zero The payback period ignores all cash flows beyond a specified required payback period The payback period ignores a project's initial investment The payback period ignores the time value of money