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NEW QUESTION: 1
Following an internal investigation into her professional business activities, a financial analyst with Smith, Kleen & Beetchnutty admits that in her NPV and IRR calculations, she has failed to index all cash flows for the effects of anticipated inflation. However, the analyst claims that the discount rate she has used in her calculations does take into effect anticipated inflation.
Which of the following correctly describes the effects this will have on the NPV and IRR calculations?
A. NPV will be biased downward, IRR will be unaffected
B. Both NPV and IRR will remain unaffected
C. NPV will be biased upward, IRR will be biased downward
D. NPV will be biased downward, IRR will be biased upward
E. Both NPV and IRR will be biased upward
F. Both NPV and IRR will be biased downward
Answer: F
Explanation:
Explanation/Reference:
Explanation:
By failing to index the cash flows of projects in her NPV analysis, while at the same time including an adjustment for inflation into the discount rate, this analyst has biased the NPV calculation downward. This is because the cash inflows are being understated by the inflation-adjusted discounting. This phenomenon will skew the NPV figure downward. Remember that while the Internal Rate of Return calculation does not specify an explicit discount rate, rather calculates the discount rate that equates the cash inflows of a project with its cash outflows, the fact remains that the cash flows in the calculation have not been indexed for the effects of positive inflation. What has happened here is that cash flows have been understated, and this will bias the IRR calculation downward.
NEW QUESTION: 2
What is used in JSON to represent a Python Tuple?
A. Collection
B. Array
C. Object
D. Dict
Answer: B
NEW QUESTION: 3
You want to enhance usability m the Dynamics 365 finance deployment for an organization You need to set up filters to help people find records that are used regularly.
Which filter expressions should you use? To answer, select the appropriate options in the answer area.
NOTE Each correct selection is worth one point.
Answer:
Explanation:
Explanation