Which of the following statements about NPV and IRR is least accurate

1.Which of the following statements is FALSE?选项： A:The incremental IRR need not exist.; B: If a change in the timing of the cash flows does not affect the NPV, then the change in timing will not impact the IRR.; C:Although the incremental IRR rule can provide a reliable method for choosing among projects, it can be difficult to apply correctly.; D:When projects are mutually exclusive, it is not enough to determine which projects have positive NPVs.

2.Which of the following accurately defines the internal rate of return (IRR)? 选项： A:The average annual profit from an investment expressed as a percentage of the investment sum; B:The discount rate (%) at which the net present value of the cash flows from an investment is zero ; C:The net present value of the cash flows from an investment discounted at the required rate of return; D:The rate (%) at which discounted net profits from an investment are zero

3.A company is valued using the Free Cash Flow to Equity Valuation (FCFE) Model and the Dividend Discount Model (DDM). Both valuation models will provide the same value for the firm if the company invests excess cash in: 选项： A: negative net present value (NPV) projects. B: positive net present value (NPV) projects. C: zero net present value (NPV) projects.

4. Which of the following statements is FALSE?选项： A:The payback investment rule is based on the notion that an opportunity that pays back its initial investments quickly is a good idea.; B:An internal rate of return (IRR) will always exist for an investment opportunity.; C:A net present value (NPV) will always exist for an investment opportunity.; D: In general, there can be as many internal rates of return (IRRs) as the number of times the project's cash flows change sign over time.

5.You have determined the profitability of a planned project by finding the present value of all the cash flows from that project. Which of the following would cause the project to look more appealing in terms of the present value of those cash flows? ( )选项： A:The discount rate decreases. B:The cash flows are extended over a longer period of time, but the total amount of the cash flows remains the same. C:The discount rate increases. D:Statements b and c are correct. E:Statements a and b are correct.

6.Which of the following is the best statement of the efficient markets hypothesis?选项： A: Investors with information that a stock had a positive net present value (NPV) will buy it, while investors with information that a stock had a negative net present value (NPV) will sell it.; B:Investor's decisions are dependent on complete current information of a firm's cash flows and accurate predictions of future cash flows.; C: Competition between investors works to make the net present value (NPV) of all trading opportunities zero.; D:A share's price is the aggregate of the information of many investors.

7.Which of the following is NOT a valid method of modifying cash flows to produce a MIRR?选项： A:Discount all of the negative cash flows to time 0 and leave the positive cash flows alone. ; B:Leave the initial cash flow alone and compound all of the remaining cash flows to the final period of the project.; C:Discount all of the negative cash flows to the present and compound all of the positive cash flows to the end of the project.; D:Turn multiple negative cash flows into a single negative cash flow by summing all negative cash flows over the project's lifetime.

8.When we use the approach of discounted cash flows to evaluate NPV (Net Present Value) of projects, the appropriate discount rate should be选项： A:the average return of other investment opportunities; B:the maximum return of other investment opportunities; C:the return of the investment opportunity with comparable characteristic of risk; D:Any of them

9.如果投资的现金流不变，但加权平均成本降低，问对NPV和IRR的计算有什么影响（）选项：A：NPV会增加，IRR不会变化B：NPV会增加，IRR会增加C：NPV会减少，IRR会增加D：NPV不会变化，IRR不会变化

10.If a project has a net present value equal to zero, then: 选项： A:the total of the cash inflows must equal the initial cost of the project. B:the project earns a return exactly equal to the discount rate. C:a decrease in the project's initial cost will cause the project to have a negative NPV. D:any delay in receiving the projected cash inflows will cause the project to have a positive NPV. E:the project's PI must also be equal to zero.

11.If a project has a net present value equal to zero, then: 选项： A: the total of the cash inflows must equal the initial cost of the project. B: the project earns a return exactly equal to the discount rate. C: a decrease in the project's initial cost will cause the project to have a negative NPV. D: any delay in receiving the projected cash inflows will cause the project to have a positive NPV. E: the project's PI must also be equal to zero.Difficulty: 1 EasyTopic: Net present valueLearning Objective: 09-01 Show the reasons why the net present value criterion is the best way to evaluate proposed investments.

12. Which of the following statement about internal rate of return is not correct ? 选项： A:The average annual profit from an investment expressed as a percentage of the investment sum ; B:The discount rate at which the net present value of the cash flows from an investment is zero. ; C:The net present value of the cash flows from an investment discounted at the required rate of return ; D: The rate at which discounted net profits from an investment are zero.

13. Which of the following statement about internal rate of return is not correct ? 选项： A:The average annual profit from an investment expressed as a percentage of the investment sum ; B:The discount rate at which the net present value of the cash flows from an investment is zero. ; C:The net present value of the cash flows from an investment discounted at the required rate of return ; D: The rate at which discounted net profits from an investment are zero.

14.Which of the following is/are not disadvantage of the Net Present Value rule?选项： A:can be misleading if inflows come before outflows B:not necessarily consistent with maximizing shareholder wealth C:ignores cash flows after the cutoff point D:relies on accurate estimate of the discount rate

15.If a project has a net present value equal to zero, then: 选项： A:the total of the cash inflows must equal the initial cost of the project.; B:the project earns a return exactly equal to the discount rate.; C:a decrease in the project's initial cost will cause the project to have a negative NPV.; D:the project's PI must be also be equal to zero.

16.什么是内部收益率(IRR)？选项： A:内部收益率（IRR）就是折现率; B:内部收益率（IRR）就是使净现值（NPV）为零的折现率; C:内部收益率（IRR）就是使净现值（NPV）大于零的折现率; D:内部收益率（IRR）就是使净现值（NPV）小于零的折现率

17.什么是内部收益率(IRR)？选项： A:内部收益率（IRR）就是折现率; B:内部收益率（IRR）就是使净现值（NPV）为零的折现率; C:内部收益率（IRR）就是使净现值（NPV）大于零的折现率; D:内部收益率（IRR）就是使净现值（NPV）小于零的折现率

18.什么是内部收益率(IRR)？选项：A．内部收益率(IRR)就是使净现值(NPV)大于零的折现率B．内部收益率(IRR)就是折现率C．内部收益率(IRR)就是使净现值(NPV)为零的折现率D．内部收益率(IRR)就是使净现值(NPV)小于零的折现率

19.Which of the following is true about perpetuities?选项： A:All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher.; B:All else equal, the present value of a perpetuity is higher when the interest rate is lower.; C: If two perpetuities have the same present value and the same interest rate, they must have the same cash flows.; D:All of the above are true statements.

20.Which of the following statements generally apply to the cash flows of a financing type project?选项： A:nonconventional cash flows; B: cash outflows exceed cash inflows prior to any time value adjustments; C: the total of all cash flows must equal zero on an unadjusted basis ; D:cash for services rendered is received prior to the cash that is spent providing the services

21.Which of the following is true about perpetuities? 选项： A、All else equal, the present value of a perpetuity is higher when the periodic cash flow is higher. B、All else equal, the present value of a perpetuity is higher when the interest rate is lower. C、 If two perpetuities have the same present value and the same interest rate, they must have the same cash flows. D、All of the above are true statements.