In using the net present value method, only projects with a zero or positive net present value are acceptable because:
a. the return from these projects equals or exceeds the cost of capital
b. a positive net present value on a particular project guarantees company profitability
c. the company will be able to pay the necessary payments on any loans secured to finance the project
d. Both a and b are correc
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “In using the net present value method, only projects with a zero or positive net present value are acceptable because: a. the return from ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If hawkins manufacturing purchased $13,000 in metal, $6,000 in cloth, and $2,000 in cleaning supplies, the raw materials inventory would have
Answers (1)
A firm's marginal cost has a minimum value of $50, its average variable cost has a minimum value of $80, and its average total cost has a minimum value of $90. Then the firm will shut down if the price of its product falls below a. $90. b. $80. c.
Answers (1)
Task-oriented and people-oriented leadership is substituted by
Answers (1)
All of the following are reasons to use an estimated method of costing inventory except: A. perpetual inventory records are not maintained. B. purchase records are not maintained. C. a disaster has destroyed the inventory records and the inventory.
Answers (1)
Ruth Company produces 1,000 units of a necessary component with the following costs: Direct Materials $34,000 Direct Labor 15,000 Variable Overhead 9,000 Fixed Overhead 10,000 Ruth Company could avoid $6,000 in fixed overhead costs if it acquires
Answers (1)
New Questions in Business
Inc.'s capital structure features 40 percent equity, 60 percent debt, and that its before-tax cost of debt is 9 percent, while its cost of equity is 15 percent. What will be TapDance's WACC? (Round your answer to 2 decimal places.) WACC %.
Answers (1)
Which of the following choices is NOT a use for project plans in the workplace? A. event planning B. teacher lesson plans C. architectural blueprints D. memos about new corporate meeting times
Answers (1)
Maria is worried about the representativeness of her study. she is conducting interviews, but each one seems to last at least 3 hours. given that she has one month to collect her data, what strategy might she use to increase her sample size?
Answers (1)
What are some drawbacks and risks to a broad generic strategy? To a focused strategy?
Answers (1)
Marshall's & Co. purchased a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000.
Answers (1)