The net present value
A) uses the discounted cash flow valuation technique.
B) will provide a direct measure of how much the firm value will change because of the capital project.
C) is consistent with shareholder wealth maximization goal.
D) all of the above.
Answer: D
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FIN202 Chapter 10
- Which of the following is true about the Net Present Value method?
- Which one of the following cash flow patterns is NOT an unconventional cash flow pattern?
- In evaluating capital projects, the decisions using the NPV method and the IRR method may disagree if
- When evaluating capital projects, the decisions using the NPV method and the IRR method will agree if
- The internal rate of return is
- Which one of the following statements about IRR is NOT true?
- Disadvantages of the payback method include the following.
- Advantages of the payback method include the following.
- Which one of the following statements about the discounted payback method is NOT true?
- Which ONE of the following statements about the payback method is true?
- To accept a capital project when using NPV,
- In computing the NPV of a capital budgeting project, one should NOT
- Which one of the following statements is NOT true?
- Which one of the following statements is NOT true?
- Capital rationing implies that
- Capital rationing implies that
- The cost of capital is
- If both projects are positive-NPV projects, then the firm should
- The firm's decision will be to
- Contingent projects would imply that
- Two projects are considered to be contingent projects if
- Two projects are considered to be mutually exclusive if
- Two projects are considered to be independent if
- Which of the following are aspects of independent projects?
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