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6 Cards in this Set
- Front
- Back
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Which decision criteria does not use time value money? |
Payback period |
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What kind of project is it when the cash flows of one project are unaffected by the acceptance/rejection of the other?
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Independent projects |
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What kind of project is it only one project, at most, can be chosen from a group of potential projects (only one can be chosen)?
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Mutually exclusive projects |
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Managers sometimes prefer the IRR to the NPV method, because it provides a % answer, easy to interpret…but is there a better IRR measure? |
Yes, modified internal rate of return (MIRR) |
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______ is the discount rate that causes the PV of a project’s terminal value (TV) to equal the PV of costs. |
modified internal rate of return (MIRR) |
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MIRR assumes cash flows are reinvested at the _____. |
WACC |
