2008 CFA Level 1 － Sample 样题(1)－Q36 black

8586

36、For two mutually exclusive capital projects with normal cash flows, the NPV and IRR methods will most likely produce conflicting rankings when the:

A. cost of capital is equal to the crossover rate.

B. cost of capital is less than the crossover rate.

C. cost of capital is greater than the crossover rate.

D. net present value is negative at the crossover rate.

      

[此贴子已经被作者于2008-11-7 15:59:38编辑过]

8586

Correct answer = B

"Capital Budgeting," John D. Stowe and Jacques R. Gagné
2008 Modular Level I, Vol. 4, pp. 21-23
Study Session 11-44-e
explain the NPV profile, compare and contrast the NPV and IRR methods when evaluating independent and mutually exclusive projects, and describe the problems that can arise when using an IRR
The NPV and IRR methods lead to conflicting decisions when the cost of capital is less than the crossover rate. 

 

 

[此贴子已经被作者于2008-5-19 16:49:33编辑过]

cxz0858

H

louzhuqued

t

zhangxie83

d

smalldong

b

ascendjiji

[em01]

Riverview

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刀剑如梦

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gening

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