Quiz Ch 08 – T/F The Payback Rule and Shareholder Benefits
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
True or false: The payback rule consistently ensures that shareholders are in a better financial position.
True or false: The payback rule consistently ensures that shareholders are in a better financial position.
True or false: For numerous firms, the constraints on capital funds are ‘soft,’ signifying that investors do NOT enforce capital rationing.
True or false: When dealing with projects of different durations and distinct initial investments, the equivalent annual cost method is a valuable tool for comparison.
Which statement accurately describes the net present value (NPV) method of investment evaluation?
How does the net present value (NPV) of an investment relate to the required rate of return?