Which of the Following Statements Regarding the NPV Rule and the Rate

question 95

Multiple Choice

Which of the following statements regarding the NPV rule and the rate of return rule is false?

• A)Accept a project if its NPV > 0.
• B)Reject a project if the NPV < 0.
• C)Accept a project if its rate of return > 0.
• D)Accept a project if its rate of return > opportunity cost of capital.

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Definitions:

Service Revenue

Income earned by a company for the services it has provided to its customers.

Normal Balance

The usual balance side (debit or credit) of an account that is expected based on the accounting equation and principles.

Accounts Receivable

Accounts receivable refers to the money owed to a company by its customers for goods or services delivered but not yet paid for.

Unearned Revenues

Money received by a company for services or goods yet to be delivered or provided, considered a liability until the transaction is completed.