whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR Introduction: The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

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Answer 1

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Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

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Answer 2

Question

Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

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Answer 3

Question

Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

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Answer 4

Question

Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

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Answer 5

Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

Answer 6

Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

Answer 7

Chapter 8.4, Problem 8.4BCQ

Summary Introduction

To discuss: whether it is true that an advantage on the rule of IRR over the rule of NPV is that the required return is not needed to use the rule of IRR

Introduction:

The net present value is the difference between the market value of the investment and the cost of the investment. The internal rate of return is a rate of discount, which makes the predictable investment’s NPV equal to zero.

Answer 8

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Answer 11

Ch. 8.1 - Prob. 8.1ACQ Ch. 8.1 - Prob. 8.1BCQ Ch. 8.2 - Prob. 8.2ACQ Ch. 8.2 - Prob. 8.2BCQ Ch. 8.3 - Prob. 8.3ACQ Ch. 8.3 - What are the weaknesses of the AAR rule?Ch. 8.4 - Prob. 8.4ACQ Ch. 8.4 - Prob. 8.4BCQ Ch. 8.5 - What does the profitability index measure?Ch. 8.5 - Prob. 8.5BCQ

Solution Summary: The author explains the advantages of the IRR over the NPV, stating that the internal rate of return is closely connected to the net present value.

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