Question

8. True or False. The net present value of one project cannot be compared to the...

8. True or False. The net present value of one project cannot be compared to the net present value of another project unless the investments required for each are equal.

a. True

B. False

9. True or False. Benefits for using payback for analyzing projects are a) it is easy to calculate and b) it ignores the time value of money.

​a. True

​b. False

10. True or False. In the heading of a Statement of Cash Flow, the time period for reporting is stated as a point in time versus a period of time.

a. True

b. False

11. The change in the balance of cash and cash equivalents on the balance sheet is equal to the changes in the noncash balance sheet accounts.159000

a. True

b. False

Homework Answers

Answer #1
8 FALSE
Net present value can be compared between two projects irrespective of investment amount.
9 TRUE
Payback period is very easy to use. You just have to calculate when we will get our
intial outflow back ignoring time value of money.
10 FALSE
Cash flow statement is prepared for a particular period of time not a point of time.
11 Data missing
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