Which of the Following Statements Regarding the Net Present Value

question 35

Multiple Choice

Which of the following statements regarding the net present value rule and the rate of return rule is false?

• A)Accept a project if NPV > cost of investment.
• B)Accept a project if NPV is positive.
• C)Accept a project if return on investment exceeds the rate of return on an equivalent-risk investment in the financial market.
• D)Reject a project if NPV is negative.

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Definitions:

Resource Utilisation

Refers to the efficient and effective use of resources, such as materials, labor, and capital, to achieve organizational or project objectives.

Quantity And Quality

Refers to the scale and standard of goods or services, emphasizing the importance of balancing both aspects to meet customer satisfaction.

Work Performance

The level of efficiency and effectiveness with which job duties and responsibilities are carried out by an employee.

Transformational Chain

A concept in change management, referring to the sequence of steps or activities that collectively support the complete transformation of an organization towards a desired state.