In Discounted Cash Flow Analysis, Which of the Following Is

question 11

Multiple Choice

In discounted cash flow analysis, which of the following is a bad decision rule?

• A) If NPV < 0 then reject
• B) If IRR < opportunity cost of capital then reject
• C) If IRR c opportunity cost of capital then reject
• D) If NPV c 0 then accept

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Definitions:

Maturation

The process by which individuals grow and develop physically, emotionally, and intellectually over time, largely as a result of genetic programming.

Order

An arrangement or sequence of objects, tasks, or priorities characterized by organization.

Separation Anxiety

A disorder characterized by excessive fear or anxiety about being apart from attachment figures.

Infant

A very young child or baby, typically from birth until the age of one year.