Questions from Financial Management

Q: Define mutual exclusivity and describe ways in which projects can be mutually

Define mutual exclusivity and describe ways in which projects can be mutually exclusive.

Q: The typical cash flow pattern for business projects involves cash outflows first

The typical cash flow pattern for business projects involves cash outflows first, then inflows. However, it's possible to imagine a project in which the pattern is reversed. For example, we might re...

Q: Broadly define and describe globalization and its implications.

Broadly define and describe globalization and its implications.

Q: Compare and contrast the nature of cash flows stemming from an investment

Compare and contrast the nature of cash flows stemming from an investment in stock with those coming from bonds.

Q: Define and discuss (words only, no equations) the concepts

Define and discuss (words only, no equations) the concepts of expected return and required return.

Q: Explain the rationale behind the NPV method in your own words.

Explain the rationale behind the NPV method in your own words. Why is a higher NPV conceptually better than a lower one?

Q: In 1983 the Bell Telephone System, which operated as AT&

In 1983 the Bell Telephone System, which operated as AT&T, was broken up resulting in the creation of seven regional telephone companies. AT&T stockholders received shares of the new companies and th...

Q: The following set of cash flows changes sign twice and has two

The following set of cash flows changes sign twice and has two IRR solutions. Identify the sign changes. Demonstrate mathematically that 25% and 400% are both solutions to the IRR equation. On the...

Q: Under what conditions will the IRR and NPV methods give conflicting results

Under what conditions will the IRR and NPV methods give conflicting results for mutually exclusive decisions? Will they ever give conflicting results for stand-alone decisions? Why?

Q: A random variable is defined as the outcome of one or more

A random variable is defined as the outcome of one or more chance processes. Imagine that you're forecasting the cash flows associated with a new business venture. List some of the things that come to...