Quiz Ch 05 – Determinants of Net Present Value
Principles of Corporate Finance
Brealey, Myers, and Allen
13th Edition
What factors influence the net present value of a project?
What factors influence the net present value of a project?
What is the likely number of Internal Rate of Returns (IRRs) for the project if the cash flow sign for a project changes two times?
What is the term for the process of determining the present value of future cash flows?
Which is NOT a disadvantage of the payback rule?
In what way does the modified internal rate of return (MIRR) differ from the internal rate of return (IRR)?
How can the present value of a future amount be increased?
Which is NOT considered a shortcoming of the Internal Rate of Return (IRR) method?
What is another name for the Internal Rate of Return (IRR) method?
What is the term used to describe the interest earned on both the initial principal and the interest reinvested from prior periods?
Jared invested $100 two years ago at 8 percent interest and reinvested the interest earned in the first year. In the second year, he earned an additional $8.64 in interest. What is the term used to describe the extra $.64 he earned in interest?