It is fair to say that the internal rate of return can be calculated without knowing a project's required return.
Question 10 options:
True
False
Depends on project's risk
Depends on project's return
Net present value _____________.
Question 5 options:
is equal to the initial investment in a project
is equal to the present value of the project benefits
is equal to zero when the discount rate used is equal to the IRR
is simplified by the fact that future cash flows are easy to estimate
requires the firm set an arbitrary cutoff point for determining whether an investment is acceptable
If stocks advanced 10% in a year when inflation was 3%, what must have been the real return?
Question 13 options:
> 10%
= 10%
< 10%
None of the above.