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单选题 The two fatal flaws of the internal rate of return rule are
学科：公司财务管理(双语)（24-25-2）
时间：2025-04-25 23:23:11
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题目1单选题
The length of time required for a project's discounted cash flows to equal the initial cost of the project is called theA. payback periodB. discounted payback periodC. net present valueD. discounted profitability indexE. internal rate of return
题目2单选题
An investment's average net income divided by its average book value defines the averageA. net present valueB. internal rate of returnC. accounting returnD. profitability indexE. payback period
题目3单选题
The discounted payback period of a project will decrease whenever theA. initial cash outlay of the project is increasedB. discount rate applied to the project is increasedC. amount of each projected cash inflow is increasedD. time period of the project is increasedE. costs of the fixed assets utilized in the project increase
题目4单选题
Given that the net present value (NPV) is generally considered to be the best method of analysis, why should you still use the other methodsA. You need to use other methods because the net present value method is unreliable when a project has unconventional cash flowsB. You need to use the other methods since conventional practice dictates that you only accept projects after you have generated three accept indicatorsC. The other methods provide results that are generally easier to understand than a net present value analysisD. The average accounting return must always indicate acceptance since this is the best method from a financial perspectiveE. The discounted payback method must always be computed to determine if a project returns a positive cash flow since NPV does not measure this aspect of a project
题目5单选题
The shortcoming(s) of the average accounting return (AAR) method is (are)A. the use of net income instead of cash flowsB. the pattern of income flows has no impact on the AARC. there is no clear-cut decision ruleD. All of the aboveE. None of the above
题目6单选题
The two fatal flaws of the internal rate of return rule areA. arbitrary determination of a discount rate and failure to consider initial expendituresB. arbitrary determination of a discount rate and failure to correctly analyze mutually exclusive investment projectsC. arbitrary determination of a discount rate and the multiple rate of return problemD. failure to consider initial expenditures and failure to correctly analyze mutually exclusive investment projectsE. failure to correctly analyze mutually exclusive investment projects and the multiple rate of return problem
题目7单选题
The elements that cause problems with the use of the IRR in projects that are mutually exclusive areA. the discount rate and scale problemsB. timing and scale problemsC. the discount rate and timing problemsD. scale and reversing flow problemsE. timing and reversing flow problems
题目8单选题
Which of the following statement is trueA. One must know the discount rate to compute the NPV of a project but one can compute the IRR without referring to the discount rateB. One must know the discount rate to compute the IRR of a project but one can compute the NPV without referring to the discount rateC. Payback accounts for time value of moneyD. There will always be one IRR regardless of cash flowsE. Average accounting return is the ratio of total assets to total net income
题目9单选题
A project has an initial cost of $40,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,200, $2,200, $3,500, and $2,700 a year for the next four years, respectively. What is the average accounting returnA. 0.0355B. 4.13%C. 4.28%D. 0.0711E. 0.12
题目10单选题
Based on the net present value method of analysis and given the information in the problem, you should: <img src="https://tihai-oss-cloud.itihey.com/img/649b2f651296a124d12d00042bc8c860.png">A. accept both project A and project BB. accept project A and reject project BC. accept project B and reject project AD. reject both project A and project BE. accept whichever one you want as they represent equal opportunities
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