![subject](/tpl/images/cats/ekonomika.png)
You are considering two mutually exclusive, equally risky, projects. Both have IRRs that exceed the WACC. Which of the following statements is CORRECT? Assume that the projects have normal cash flows, with one outflow followed by a series of inflows. a. If the cost of capital is greater than the crossover rate, then the IRR and the NPV criteria will not result in a conflict between the projects. One project will rank higher by both criteria. b. For a conflict to exist between NPV and IRR, the initial investment cost of one project must exceed the cost of the other. c. If the two projects’ NPV profiles do not cross in the upper right quadrant, then there will be a sharp conflict as to which one should be selected. d. For a conflict to exist between NPV and IRR, one project must have an increasing stream of cash flows over time while the other has a decreasing stream. If both sets of cash flows are increasing or decreasing, then it would be impossible for a conflict to exist, even if one project is larger than the other.
![ansver](/tpl/images/cats/User.png)
Answers: 1
![](/tpl/images/ask_question.png)
![](/tpl/images/ask_question_mob.png)
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 20:10, wtwbegay
Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.
Answers: 2
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 23:00, vipergod07
Customers arrive at rich dunn's styling shop at a rate of 3 per hour, distributed in a poisson fashion. rich can perform an average of 5 haircuts per hour, according to a negative exponential distribution. a) the average number of customers waiting for haircuts= customersb) the average number of customers in the shop= customersc) the average time a customer waits until it is his or her turn= minutesd) the average time a customer spends in the shop= minutese) the percentage of time that rich is busy= percent
Answers: 3
You know the right answer?
You are considering two mutually exclusive, equally risky, projects. Both have IRRs that exceed the...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 11.07.2019 11:30
![Konu](/tpl/images/cats/health.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 11.07.2019 11:30
![Konu](/tpl/images/cats/mat.png)
Mathematics, 11.07.2019 11:30
![Konu](/tpl/images/cats/mat.png)
Mathematics, 11.07.2019 11:30
![Konu](/tpl/images/cats/informatica.png)
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 11.07.2019 11:30
![Konu](/tpl/images/cats/mat.png)
Mathematics, 11.07.2019 11:30