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Author Question: A company is considering a new project. The CFO plans to calculate the projects NPV by estimating ... (Read 17 times)

Aimless0988

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Question 1

When considering two mutually exclusive projects, the firm should always select that project whose IRR is the highest provided the projects have the same initial cost. This statement is true regardless of whether the projects can be repeated or not.

◦ true
◦ false

Question 2

A company is considering a new project. The CFO plans to calculate the project’s NPV by estimating the relevant cash flows for each year of the project’s life (the initial investment cost, the annual operating cash flows, and the terminal cash flow), then discounting those cash flows at the company’s WACC. Which factor should the CFO include in the cash flows when estimating the relevant cash flows?

all interest expenses on debt used to help finance the project


all sunk costs that have been incurred relating to the project


sunk costs that have been incurred relating to the project, but only if those costs were incurred prior to the current year


the investment in working capital required to operate the project, even if that investment will be recovered at the end of the project’s life



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Marked as best answer by Aimless0988 on Aug 7, 2023

bainer89

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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.
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Aimless0988

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it


bassamabas

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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