Question
please answer question 38 and 39 and 40 and 41
please answer the 4 questions not just one question
c, cost of capital d. internal rate of return of the following statements is true? a. If PI 1, then IRR>cost of capital b. If PI O, then NPV>0 s is the graphical relationship between a project's NPV and various interest rate a. risk adjusted discount rate b. net present value profile C. profitability index d. reinvestment rate The situation in which a company has more acceptable projects than resources available is known as a. capital rationing b. capital budgeting c, conventional projects d. mutually exclusive projects 40. Given the following three mutually exclusive projects and their capital budgeting data Payback IRR NPV $ 449 571 $417 2.5 years 3.2 years 3.0 years 24% 17% 19% Which project(s) should be chosen? a. Project K b. Project L c. Project M d. All three projects
Explanation / Answer
38) b) NPV Profile
39) a) Capital Rationing
40) d) All the three projects
41) b) Risk adjusted discount rate
