The Decision You Should Take Regarding This Project Is

question 68

Multiple Choice

The decision you should take regarding this project is:

• A)reject the project since the NPV is negative.
• B)reject the project since the NPV is positive.
• C)accept the project since the IRR < 20%.
• D)accept the project since the IRR > 20%.

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Definitions:

Sales Discount

A reduction in the price of goods or services offered to customers, typically to prompt early payment or bulk purchases.

Gross Profit

The difference between sales revenue and the cost of goods sold, indicating the profitability of selling goods and services.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues.

Bad Debt Expense

An estimate of the accounts receivable that a company does not expect to collect, recognized as an expense.