GPFP - 9

Question 0

If NPV calculation is positive, the investment is ___ investment.

Answer 0

a good

Question 1

The two time value of money calculations that can be used to analyze the attractiveness of a particular project, or to compare alternative project choices

Answer 1

NPV and IRR

Question 2

If NPV calculation is negative, the investment is ___ investment.

Answer 2

not a good

Question 3

NPV of zero would indicate that the investment is?

Answer 3

Breaking even

Question 4

Which time value of money calculation calculates the discount rate at which the present value of the cash inflows equals the present value of the cash outflows?

Answer 4

IRR

Question 5

The IRR is the rate at which NPV is?

Answer 5

Equal to zero

Question 6

If the IRR is larger than the investor’s required return or cost of capital, the investment is?

Answer 6

Attractive

Question 7

And the IRR is below the investor’s required return or cost of capital, investment is?

Answer 7

Not attractive