we can still calculate the IRR on incremental cash flows. True or false? Explain with example?

Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash flow profile are moved forward to t = n using what value of i in the (F|P,i,n–t) factors? a. 0 b. The unknown value of ERR (i′) c. MARR d. IRR.

Present and Future Values of Single Cash Flows for Different Interest Rates Use both the TVM equations and a financial calculator to find the following values. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 6%. $   An initial $700 compounded for 10 years at 12%. $   The present value of $700 due in 10 years at a 6% discount rate. $   The present value of $700 due in 10 years at a 12% discount rate. $

Present and Future Values of Single Cash Flows for Different Interest Rates Use both the TVM equations and a financial calculator to find the following values. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 3%. $ An initial $700 compounded for 10 years at 6%. $ The present value of $700 due in 10 years at a 3% discount rate. $ The present value of $700 due in 10 years at a 6% discount rate. $

When the underlying riskiness of free cash flows (FCF) decreases, the value of the project O increases stays the same decreases

The rate of return that equates the present value of cash inflows and outflows is the: A. hurdle rate.B. desired rate of return.C. internal rate of return. D. minimum rate of return.

The Profitability Index  (PI) is a financial metric that depends only on the Present Value (PV) of expected future cash inflows. This statement is:  a False.  b Only partly true.  c True  d Only partly false.

What is the One potential complexity relates to time value of money?

Net present value is better than Payback period (PP)... OA. because it is a simple method OB. because it is a quick method ignoring the time value of money OC. because it fully addresses the timing of the cash flows O D. because it fully addresses the irrelevant cash flows

Use an example to explain to show why capital budgeting relies on cash flows rather than net income?