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NEW QUESTION: 1
The internal rate of return for a project can be determined:
A. By finding the discount rate that yields a net present value of zero for the project.
B. By subtracting the firm's cost of capital from the project's profitability index.
C. Only if the project's profitability index is greater than one.
D. Only if the project cash flows are constant.
Answer: A
Explanation:
Choice "b" is correct. The internal rate of return (IRR) is the discount rate that produces a NPV of zero.
Choice "a" is incorrect. IRR valuation does not require cash flows that are constant.
Choice "c" is incorrect. Cost of capital is a percentage, profitability index is a ratio; this won't work.
Choice "d" is incorrect. IRR can be determined even if the profitability index is less than 1.0. A profitability
index of less than 1.0 means a negative NPV, which means the IRR is less than the discount rate being
used.

NEW QUESTION: 2
Cost of goods sold (COGS) split functionality is available in account-based CO-PA.
Which settings are necessary?
Note: There are 2 correct answers to this question.
Response:
A. The corresponding cost elements must exist in the chart of accounts.
B. Cost elements must be mapped to cost components
C. Characteristic values and characteristic groups must be maintained
D. Operating concern currency must be determined.
Answer: A,B

NEW QUESTION: 3
Working to prepare the portfolio performance management plan, assume you have been involving others in the process to help secure their later support of the plan. You also reviewed historical information and other artifacts. Not to be overlooked is a/an:
A. Regulatory requirements
B. Benefit schedule
C. Governance model
D. Organization chart
Answer: B

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