A Project Has a Series of Non-Normal Cash Flows That

question 65

Multiple Choice

A project has a series of non-normal cash flows that result in a terminal value (TV) of $25,000 in 10 years.If the project's initial costs are $7,500,what is your recommendation regarding this project to management (accept/reject) ?

• A)accept as the MIRR is 12.79%
• B)reject as the MIRR is greater than zero
• C)accept as the terminal value is greater than the present value of the costs
• D)accept as the MIRR is 12.50%

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Definitions:

P-value

A statistical measure that helps scientists and researchers determine the significance of their experiment's or study's results.

Lambda

A symbol (λ) used in various scientific fields, including mathematics, physics, and computer science, representing wavelengths, eigenvalues, and other concepts.

Coefficient Alpha

A statistic used to assess the reliability or consistency of a set of scale or test items.

Life Satisfaction

An evaluation of how one’s life is generally and how it compares to some standard.