Which of the following investment rules may not use all possible cash flows in its calculation? A Profitability index. B) Net present value. (C) Payback period. D Internal rate of return.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter12: Capital Budgeting: Decision Criteria
Section: Chapter Questions
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Which of the following investment rules may not use
all possible cash flows in its calculation?
A) Profitability index.
Net present value.
C) Payback period.
D Internal rate of return.
Transcribed Image Text:Which of the following investment rules may not use all possible cash flows in its calculation? A) Profitability index. Net present value. C) Payback period. D Internal rate of return.
If two projects offer the same positive NPV. Which of
the following statements is correct?
A They are mutually exclusive projects.
(B) They also have the same IRR.
They have the same payback period.
They add the same amount to the value of
the firm.
Transcribed Image Text:If two projects offer the same positive NPV. Which of the following statements is correct? A They are mutually exclusive projects. (B) They also have the same IRR. They have the same payback period. They add the same amount to the value of the firm.
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