Which of the following is not a characteristic of a capital expenditure, for the purposes of government budgeting? a. recurring nature b. large price tag c. long life d. none of the above

B. Critically compare the principles of the IRR and net present value methods including their advantages and disadvantages. Relate the answer to the above cas

Capital Budgeting Part I) Capital budgeting is the process of deciding: O A. between financing with debt or equity O B. which projects to take C. which financial assets to purchase

Question 6 of 9 Due to a restricted budget, a company can only undertake one of the following projects: Project X: This project has an initial investment of $800,000 and annual profits of $400,000 in year 1, $375,000 in year 2 and $300,000 in year 3. Project Y: This project has an initial investment of $800,000 and a profit of $1,150,000 in year 3. a. Calculate the IRR for Project X. % Round to two decimal places b. Calculate the IRR for Project Y. % Round to two decimal places c. Which project should the company undertake? (click to select)Project XProject Y

Describe the investment decisions made in the private sector?

What is the 'mps' ? a) 1/3 b) 2/3 c) 3/2 d) 1/2 e) 4

help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working

2 96 nts Turning Point (A) (B) (C) (D) (E) 1 The data in the accompanying table give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time. Date Jan 1980 July 1980 July 1981 November 1982 July 1990 The economy experienced an expansion that lasted from Multiple Choice Seved Help Real GDP (2012 $ billions) 6,837.6 6,688.8 6,978.1 6,794.9 9,398.5 Save & Exit Submit

28. What is the level of investment, I? (A) $250 billion. (B) $305 billion. (C) $345 billion. (D) $555 billion. The next two questions involve the following information. The real interest rate, r, is the nominal interest rate, i, minus inflation, 7. In formal terms, r = i- T. For example, if an investment offers an annual return of 5 percent, and inflation is 2 percent, then the real interest rate is 3 percent. 29. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the nominal yield on the bond? (A) 6 percent. (В) 8.5 рercent. (C) 10 percent. (D) 12.5 percent. 30. You purchase a $1,000 face-value bond for $800. The coupon is $100 per year, and inflation is 4 percent per year. What is the real coupon rate on the bond? (A) 6 percent. (В) 8.5 percent. (C) 10 percent. (D) 12.5 percent.

Define IRR method of capital budgeting. What are some of the problems associated with using IRR approach for mutually exclusive projects? Briefly explain with examples. How do managers deal with those problems?