Quiz Ch 08 – IRR and NPV Relationship
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
Given an IRR of 15% for a project, what is the likely outcome for the project’s NPV?
Given an IRR of 15% for a project, what is the likely outcome for the project’s NPV?
In the context of mutually exclusive projects, how can the IRR be applied to select the best project?
What is the typical approach taken by managers when deciding among mutually exclusive projects?
A project can exhibit various internal rates of return corresponding to the number of:
What is the equivalent of the opportunity cost of capital?
What is the opportunity cost of capital for a project?
What represents the opportunity cost for shareholders when a manager rejects a positive NPV project?
What is done with the cash flows in the computation of a project’s payback period?
What is a correct statement regarding a project with a positive NPV?
The profitability index chooses projects by prioritizing the: