1. What is the approximate IRR for the cash flow curve depicted? a. 5% b. 10% C. 15% d. 20% -Select- V 2. When the cost of capital is less than a project's IRR, the NPV for the project is a. negative b. equals the project's IRR C. positive d. cannot be determined -Select- v 3. If the cost of capital increases, the NPV for the project a. increases b. stays the same C. decreases d. cannot be determined Select- v
1. What is the approximate IRR for the cash flow curve depicted? a. 5% b. 10% C. 15% d. 20% -Select- V 2. When the cost of capital is less than a project's IRR, the NPV for the project is a. negative b. equals the project's IRR C. positive d. cannot be determined -Select- v 3. If the cost of capital increases, the NPV for the project a. increases b. stays the same C. decreases d. cannot be determined Select- v
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...
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