This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Perhaps the greatest disadvantage of using the IRR method to evaluate investment opportunities is (Read 35 times)

jace

  • Hero Member
  • *****
  • Posts: 541
on: Apr 25, 2021

Question 1

Los Angeles Lumber Company (LALC) is considering a project with a cost of $1,000 at Time = 0 and inflows of $300 at the end of Years 1-5. LALC's cost of capital is 10%. What is the project's modified IRR (MIRR)?
◦ 10.0%
◦ 12.9%
◦ 15.2%
◦ 18.3%
◦ 20.7%

Question 2

Perhaps the greatest disadvantage of using the IRR method to evaluate investment opportunities is
◦ dealing with uncertain cash flows from the project.
◦ the assumption that all cash flows from the project will be reinvested at the IRR.
◦ the inability to calculate most IRRs without a computer.
◦ the need to compare IRR with the firm's cost of capital which cannot be estimated precisely.
◦ the fact that the technique does not account for risk.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by jace on Apr 25, 2021

mjenn52

  • Sr. Member
  • ****
  • Posts: 351
Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 58% of students answer this correctly


jace

  • Member
  • Posts: 541
Reply 2 on: Apr 25, 2021
Wow, this really help

nyrave

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

The most common childhood diseases include croup, chickenpox, ear infections, flu, pneumonia, ringworm, respiratory syncytial virus, scabies, head lice, and asthma.

Did you know?

Street names for barbiturates include reds, red devils, yellow jackets, blue heavens, Christmas trees, and rainbows. They are commonly referred to as downers.

The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p The world has been horrified recently at a U.S. Congress so polarized and paralyzed that it cannot p
Preschool and child care afford opportunities for many new experiences but also can be stressful for ... Preschool and child care afford opportunities for many new experiences but also can be stressful for ...
Performing Venipuncture Using the Vacutainer Method Performing Venipuncture Using the Vacutainer Method
Derivative using delta method Derivative using delta method
Use a compound angle formulas to evaluate the following: Use a compound angle formulas to evaluate the following:
Offset Method Plot of Land Offset Method Plot of Land
Video: Red alga life cycle Animation

For a complete list of videos, visit our video library