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:

Germ Layer

In early embryonic development, one of the three primary layers (ectoderm, mesoderm, and endoderm) that give rise to all tissues and organs of an organism.

Dermis

The layer of skin beneath the epidermis that contains nerve endings, sweat glands, and hair follicles.

Ectoderm

The outermost of the three primary layers of an embryo that develops into the nervous system, skin, and related structures.

Germ Layer

One of the primary layers of cells (endoderm, mesoderm, ectoderm) in the early embryo that gives rise to all tissues and organs of the organism.