Multiple Choice
Jigger Ltd is considering two alternative projects; each of which will involve an initial outlay of £600,000. Both will have a four-year life and are expected to yield the following cash inflows:
Which of the following is not true?
A) Project X has a payback period of 3 years.
B) Project Y has a payback period of 2.5 years.
C) Project X will always yield a higher NPV than project Y.
D) Project Y will always yield a higher NPV than project X.
Correct Answer:
Verified
Correct Answer:
Verified
Q1: A business can either receive £200 now
Q2: If a 10% discount rate is used,
Q3: Jigger Ltd is considering undertaking project X,
Q5: The cash flows associated with a project
Q6: Shep Ltd is considering a possible four-year
Q7: What does the accounting rate of return
Q8: Alternative projects, M and N, have been
Q9: Which of the following statements concerning the
Q10: Which of the following is an advantage