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Author Question: Your firm is evaluating a potential investment in new machinery, but the manager in charge of the ... (Read 82 times)

geoffrey

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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

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Reply #1 on: Jul 1, 2018
Answer to Question 1

B

Answer to Question 2

T


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geoffrey

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Reply #2 on: Jul 1, 2018
Correct answers!


macagnavarro

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Reply #3 on: Jul 1, 2018
Great! Please up vote :D


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