A Positive Net Present Value Indicates That a Project Will

question 101

Multiple Choice

A positive net present value indicates that a project will:

• A)generate a return in excess of the firm's cost of capital.
• B)generate more cash than is initially invested.
• C)generate more cash than alternative projects.
• D)generate a return in excess of alternative projects.

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Definitions:

Dispute

A disagreement or argument between parties that can arise from differing views, interests, or claims.

Devaluing

The act of reducing or undermining the perceived worth, importance, or validity of something or someone.

Concessions

Compromises made by one party in a negotiation to reach an agreement or settlement.

Misperceptions

Incorrect understandings or interpretations of something or someone.