WebIn capital budgeting analyses, it is possible that NPV and IRR will both involve assuming reinvestment of the project's cash flows at the same rate. ANS: T If the cost of capital happens to be equal to the IRR, this condition can exist. DIF: Medium TOP: Reinvestment rate assumption. A project's NPV increases as the required rate of return declines. Web30. Normal Projects S and L have the same NPV when the discount rate is zero. However, Project S's cash flows come in faster than those of L. Therefore, we know that at any …

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WebAssume that the economy is enjoying a strong boom, and as a result interest rates and money costs generally are relatively high. The WACC for two mutually exclusive projects that are being considered is 12%. Project S has an IRR of 20% while Project L's IRR is 15%. The projects have the same NPV at the 12% current WACC. WebQ4. Which of the following statements is/are not correct concerning the discount payback period, the IRR and the NPV methods? a. a project with an Internal Rate of Return (IRR) equal to the Required Rate of Return (RRR) will have an NPV of zero. b. a project's NPV may be positive even if the IRR is less than the Required rate of return (RRR). c. how do real estate agencies make money

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WebHá 1 dia · This paper presents the technical and economic analysis of a solar–wind electricity generation system to meet the power requirements of a rural community (Okorobo-Ile Town in Rivers State, Nigeria) using the Renewable—energy and Energy—efficiency Technology Screening (RETScreen) software. The entire load … WebProject S's undiscounted net cash flows total $20,000, while L's total undiscounted flows are $30,000. At a WACC of 10%, the two projects have identical NPVs. Which project's NPV is more sensitive to changes in the WACC? a. Project L. b. Both projects are equally sensitive to changes in the WACC since their NPVs are equal at all costs of ... Web(C) If the cost of capital increases, each project's IRR will decrease. (D) If Projects S and L have the same NPV at the current cost of capital, 10%, then Project L, the one with the … how do real estate agents advertise