#10 If the required rate of return is greater than the internal rate of return o

Question

#10 If the required rate of return is greater than the internal rate of return of a potential investment, the company should judge the investment as acceptable. A. This is a True statement B. This is a False statement C. Not enough information provided. #11 The basic concept involved in time value of money calculations is that A. it is better to receive a dollar in the future than to receive a dollar today B. incremental revenues must exceed incremental costs. C. it is better to receive a dollar today than to receive a dollar in the future. D. it can only be applied to positive cash flows #10 If the required rate of return is greater than the internal rate of return of a potential investment, the company should judge the investment as acceptable. A. This is a True statement B. This is a False statement C. Not enough information provided. #11 The basic concept involved in time value of money calculations is that A. it is better to receive a dollar in the future than to receive a dollar today B. incremental revenues must exceed incremental costs. C. it is better to receive a dollar today than to receive a dollar in the future. D. it can only be applied to positive cash flows

Explanation / Answer

If the required rate of return is greater than the internal rate of return of a potential investment, the company should judge the investment as acceptable.

True

The basic concept involved in time value of money calculations is that

it is better to receive a dollar today than to receive a dollar in the future.

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