Which project has no rate of return?

Q: Which is the better investment option?

A: The process of finding the present value using the future value, interest rate and the compounding…

Q: Determine the internal rate of return of a project?

A: Capital budgeting analysis is useful to know which projects are profitable and which are not. There…

Q: payback period?

A: Payback period is when the initial cash outflow is recovered via cash inflows

Q: How can we Evaluate a Single Project: For a simple investment?

A: Following are the ways in which a single project can be evaluated: Present worth: Present worth is…

Q: Is there any reason to believe that the project with the lower payback period is the better project?

A: Payback Period: It is the period in which the cost of the project is recovered. Hence, the shortest…

Q: What happens if the payback period is within the acceptable range?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Why would the average rate of return differ from the internal rate of return on the same project

A:

Q: Nhat is the exact rate of return?

A: The net gain or net loss of an investment over a predetermined time period is referred to as a rate…

Q: ta. What is the project's payback?

A: It refers to the time period that is required to get an amount invested in a project with some…

Q: How can we aggregate the risk over the project life in terms of net present value?

A: It is an incorporation of the risk level of the project over the life of the in terms of NPV by way…

Q: What will happen to the internal rate of return (IRR) of a project if the discount rate is decreased…

A: IRR is the rate where the NPV of the project is ZERO

Q: What do you know about the mathematical value of the internal rate of return of a project under each…

A: Internal rate of return(IRR) is rate at which net present value(NPV) of project is equal to zero or…

Q: What factors verify that the project is marginally acceptable?

A: Capital budgeting decisions are generally taken for long-term purposes that are irrevocable.…

Q: Why do most of the engineers prefer Rate of Return Analysis to the PW method?

A: Answer: They would be calculating the present worth of cash flows using a net present value…

Q: What is the risk free return?

A: Rate of return is the return percentage which an investor gets from the money which has been…

Q: What is the payback method? What are its main strengths and weaknesses?

A: Explain the meaning of the payback method.   The payback period is the expected time period which is…

Q: Which alternative offers you the highest effective rate of return?

A: Investment appraisal is the method of evaluating and selecting investments from various investment…

Q: If then the project is economically justified.

A: If ERR is HIGHER, then the project is economically justified.

Q: What is the project's discounted payback?

A: Investment appraisal techniques are used while investing in any project. These techniques tell us…

Q: How is it possible to achieve a higher rate of return without significantlyincreasing risk?

A: As we all learnes till now that higher the risk provides higher return and if we want the high…

Q: Which alternative should be selected? Use a challenger-defender rate of return analysis.

A: Given,  Particulars Projects A($) B($) C($) D($) Initial investment 8500 18500 26500 30000…

Q: What is the potentially acceptable investment alternative?

A: An alternative investment is a financial asset that doesn't can be categorized as one of the…

Q: Consider IRR on Incremental Investment when Initial IRR Flows are equal?

A: Answer: IRR is a measure in capital budgeting used to measure the value of the predicted…

Q: Do maturity models neglect ambiguities and uncertainties of projects or do they do just the…

A: The maturity model helps to evaluate the capability of an organisation. It also determines how…

Q: In which situation are the project lives unequal?

A: Answer: A business will face a situation where multiple capital projects display a positive net…

Q: a. Which of these projects would you accept? Why? b. What is the cost of the capital rationing…

A: The situation in which a firm can accept only a certain number of projects due to limitation of…

Q: Compare the mutually exclusive alternatives based on the rate of return?

A: Mutually exclusive projects are the projects out of which one best project is selected due to lack…

Q: According to the Discounted Payback method, which project should be selected? What is the chief…

A: According to the given information, Project D is said to have lesser discounted payback period…

Q: When does the project reach the payback point?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: What is a minimum attractive rate of return (MARR)?

A: Definition: Minimum Attractive Rate of Return (MARR): It is the minimum rate of return on the basis…

Q: What is the net present value (NPV) of this opportunity?

A: Net present value (NPV) is the contrast between the present value of money inflows over some…

Q: What are some possible reasons that a project might have a high NPV?

A: The question is based on the concept of capital budgeting techniques. The Net present value (NPV) is…

Q: Can we consider Project Risk by Discount Rate?

A: The discount rate is an interest rate that is used in computing the present value of the future cash…

Q: Can borrowers and lenders that perfectly agree on maximizing expected returns might still disagree…

A: The person who borrows the amount in order to conduct the business operations is known as the…

Q: Why would the yield curve invert?

A: In finance yield curve is that line that shows yields (or interest rates) of those debt instruments…

Q: How long does it take to recover the initial investment?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: What type of projects does the Payback method favor?

A: Payback method: It implies to a method of evaluating investment projects by computing the time, it…

Q: If the net present value of a proposed investment is negative, what is the discount rate used? Less…

A: Net present value (NPV) is the significant present value difference between cash outflows and cash…

Q: Why does a project not merit consideration unless its payback period is shorter than some special…

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Is the financial breakeven point of a project the same as the crossover rate?

A: Crossover rate Crossover Rate is the weighted average cost of capital at which the Net present…

Q: How can we Consider Project Risk by Discount Rate?

A: In corporate finance, a discount rate is the rate of return used to discount future cash flows back…

Q: have led to a drop in the required rate of return?

A: Required Rate of return is the minimum rate of return which an investor expects for investing in a…

Q: What are the weaknesses of the payback method?

A: Payback period is the amount of time required for firm to recover its initial investment in projects…

Q: What is the project’s payback period?

A: Payback period: A project's payback period can be described as the number of years to recover the…