Suppose You Have a Project Whose Discounted Payback Is Equal

question 13

Multiple Choice

Suppose you have a project whose discounted payback is equal to its termination date. What can you say for sure about its PI?

• A) The discounted payback will be greater than zero.
• B) It will have a PI and NPV of zero.
• C) The NPV and IRR will yield the same decision.
• D) The IRR will just equal the cost of capital.

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Definitions:

Post-Colonial Theory

An approach that examines the ways in which the colonial past has shaped the social, political, and economic experiences of a colonized country.

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A measure of the total positive outcomes minus the negative outcomes associated with a decision or policy.

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The Canadian Charter of Rights and Freedoms, a bill of rights embedded in the Constitution of Canada, protecting various civil and political rights.