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:

Transactions

The act of conducting business or commercial dealings, such as buying, selling, or exchanging goods, services, or financial instruments.

Profits

The surplus remaining after total costs are deducted from total revenue, and an indicator of the financial health and success of a business.

Hydraulic Fracturing

A technique used in the oil and gas industry to increase extraction rates by injecting fluid into subterranean rocks to create fractures.

Fracking

A process of injecting liquid at high pressure into subterranean rocks, boreholes, etc., to force open existing fissures and extract oil or gas.