Which of the following statements is most likely to be correct for a project in which the NPV is negative when based on the inflows from net income?
A) NPV should be calculated with pretax cash flows.
B) The project should be rejected or abandoned.
C) NPV may turn positive after adjusting for depreciation expense.
D) NPV has probably been overestimated.
Ans: C) NPV may turn positive after adjusting for depreciation expense.
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A political candidate makes a speech. To measure response before and after the speech
a. it is best to use a mail questionnaire to audience members b. it is best to use cross sectional polls of audience members c. it is best to use the same panel of audience members d. it is best to use telemarketing and call a random sample of audience members e. it is best to monitor media and do a media content analysis
If Enrique leaves the money in the account until he is 68, by approximately what amount would the balance increase between his 62nd and 68th years?
As a teenager, Enrique learned a valuable lesson from his dad, who told him to invest $1,000 at 8 percent interest at age 20 and leave the money alone until age 65. Enrique's dad knew that one strategy used by wealthy people is to exercise self-discipline and never touch a long-term savings plan. Enrique is happy to apply his dad's advice. A) $14,872 B) $108,569 C) $8,291 D) $35,551