36．An analyst is developing net present value (NPV) profiles for two investment projects being considered by a company. The only difference between the two projects is that Project 1 is expected to receive larger cash flows early in the life of the project, while Project 2 is expected to receive larger cash flows late in the life of the project. Compared to Project 1, which of the following best describes the:
| slope of the NPV profile for Project 2? | sensitivity of the NPV for Project 2 to changes in the company's cost of capital? | A | Flatter | Less sensitive | B | Flatter | More sensitive | C | Steeper | Less sensitive | D | Steeper | More sensitive |
Select exactly 1 answers from the following: A. B. C. D. 答案和详解如下！ Feedback: Correct answer: D Fundamentals of Financial Management, 8th edition, Eugene F. Brigham and Joe F. Houston (Dryden, 1998), pp. 399?05 2006 Modular Level I, Vol. III, pp. 76-81 Study Session 11-47-c explain the NPV profile, the relative advantages and disadvantages of the NPV and IRR methods, particularly with respect to independent versus mutually exclusive projects, the 搈ultiple IRR problem?and the cash flow pattern that causes the problem, and why NPV and IRR methods can produce conflicting rankings for capital projects
All else equal, a delay in the receipt of cash flows will make a project抯 net present value more sensitive to changes in the discount rate; the increased sensitivity is illustrated by a steeper slope in the net present value profile.
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发表于 2006-11-22 11:02
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