Quiz Ch 08 – Acceptance of Projects Based on NPV Rule
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the criterion for accepting all projects based on the NPV rule?
What is the criterion for accepting all projects based on the NPV rule?
What are the potential consequences of the cost of capital rationing for a firm?
What is the decision rule for net present value (NPV)?
What action should a project manager take when a project’s NPV is calculated to be negative?
What happens to the NPV of a specific project as the discount rate is raised?
How will the NPV of a project be affected by the following changes?
Who enforces soft and hard capital rationing on a firm, and what distinguishes these two types of capital rationing?
Which investment criteria consider the impact of the time value of money?
What is the equivalent of the opportunity cost of capital?
What is the opportunity cost of capital for a project?