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10 Cards in this Set
- Front
- Back
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The lower a firms tax rate, the more attractive debt capital will be to that firm |
False |
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The missed sale of the old equipment is an opportunity cost and had to be included |
True |
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Business risk refers to the fluctuation of operating income, not net income |
True |
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Lower operating leverage stems from having lower total fixed cost and higher VC per unit |
True |
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As a firm begins to add debt to its capital structure, the firms EPS will increase |
True |
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MIRR will fall between the cost of capital and the IRR for that project |
True |
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Without calculating the projects MIRR you would not know which project MIRR would choose as the better one just by knowing NPVs and iRrs |
True |
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If a project has normal cash flows whose sum exceeds zero, and has an MIRR that is greater than IRR THE PROJECT WOULD HAVE TO HAVE A NEGATIVE NPV |
True |
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Front (Term) |
D is false |
|
Front (Term) |
C |
