Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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What is the replacement chain method (or least common multiple), which assumes that each project can be repeated as many times as necessary to reach a common life span?
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- How do we calculate the PWfor the projects?arrow_forwardWhat should be done to calculate accurately a project's true IRR,?arrow_forwardWhat would you recommend if the benefit / cost ratio is >1: Select one: a. The project must be accepted. b. Benefit / cost ratio cannot be >1 c. The project must be rejected. d. Benefit / cost ratio always =1arrow_forward
- When faced with a set of independent projects, one should select (choose the best answer) all projects with a PI greater than one. all projects with an IRR greater than the hurdle rate all projects with a positive NPV or an IRR greater than the hurdle rate or a PI greater than one. all projects with a positive NPV or an IRR greater than the hurdle rate. all projects with an IRR greater than the hurdle rate or a PI greater than one. all projects with a positive NPV or a PI greater than the one. all projects with a positive NPVarrow_forwardWhy do we need to use the incremental analysis when comparing mutually exclusive projects?arrow_forwardAre Project Lives longer the Analysis period? how?arrow_forward
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