« previous next »

Author Question: Your firm is evaluating a potential investment in new machinery, but the manager in charge of the ... (Read 70 times)

geoffrey

  • Hero Member
  • *****
  • Posts: 880
on: Jul 1, 2018
Your firm is evaluating a potential investment in new machinery, but the manager in charge of the project uses an opportunity cost of capital that is too large. How does this error affect the projected net present value of the firm's investment?
 
  A) NPV is overstated
  B) NPV is understated
  C) NPV is unaffected
  D) NPV changes from positive to negative

Question 2

College graduates will earn over 1,000,000 more on average than high school dropouts before retiring.
 
  Indicate whether the statement is true or false


macagnavarro

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

T


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

geoffrey

  • Hero Member
  • *****
  • Posts: 880
Reply #2 on: Jul 1, 2018
Correct answers!


macagnavarro

  • Sr. Member
  • ****
  • Posts: 334
Reply #3 on: Jul 1, 2018
Great! Please up vote :D


« previous next »
 

Did you know?

Although puberty usually occurs in the early teenage years, the world's youngest parents were two Chinese children who had their first baby when they were 8 and 9 years of age.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Did you know?

In the United States, congenital cytomegalovirus causes one child to become disabled almost every hour. CMV is the leading preventable viral cause of development disability in newborns. These disabilities include hearing or vision loss, and cerebral palsy.

Did you know?

In 1886, William Bates reported on the discovery of a substance produced by the adrenal gland that turned out to be epinephrine (adrenaline). In 1904, this drug was first artificially synthesized by Friedrich Stolz.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Water Potential, Solute Potential, and Pressure Potentia Water Potential, Solute Potential, and Pressure Potentia
Charge development is unfavorable and can be circumvented by donation of a proton Charge development is unfavorable and can be circumvented by donation of a proton
Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ... Abdominal thrusts are delivered with a firm thrust into the patient’s abdomen with an upward ...
Neuronal action potential. Neuronal action potential.
Modern machinery has helped farmers increase yields Modern machinery has helped farmers increase yields
An electron is accelerated from rest through a potential difference. After acceleration the ... An electron is accelerated from rest through a potential difference. After acceleration the ...
Video: ACTH/Cortisol (glycogenolysis, protein catabolism, lipolysis and gluconeogenesis)

For a complete list of videos, visit our video library