FIN 571 Course Great Wisdom / tutorialrank.com FIN 571 Course Great Wisdom / tutorialrank.com | Page 10

all cash inflows occur during the last year instead of periodically
throughout a project’s life.
each cash inflow is delayed by one year.
the initial cost of a project increases.
the discount rate increases.
the rate of return decreases.

38.Graham and Harvey (2001) found that _____ were the two most
popular capital budgeting methods.
IRR and payback
IRR and NPV
discounted payback and NPV
IRR and modified IRR
NPV and PI

39.The primary reason that company projects with positive net
present values are considered acceptable is that:
they return the initial cash outlay within three years or less.
the investment's cost exceeds the present value of the cash inflows.
they create value for the owners of the firm.
the project's rate of return exceeds the rate of inflation.
the required cash inflows exceed the actual cash inflows.