1. When a capital investment is expected to provide unequal annual cash inflows, the payback period

1. When a capital investment is expected to provide unequal annual cash inflows, the payback period cannot be calculated.TrueFalse2. If a project has a positive net present value, its internal rate of return will exceed the firm’s hurdle rate.True False3. Generally, a company should use the MACRS method to calculate depreciation on its income tax return, due to the effects of the time value of money.True False4. A cash flow that only occurs in equal amounts each year is referred to as:an annuity. a lump sum. None of these. a perpetuity.5. The assumption regarding ordinary annuities is that cash flows occur at the end of each period.True False

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