For a Project with Conventional Cash Flows, If NPV Is

question 44

Multiple Choice

For a project with conventional cash flows, if NPV is greater than zero, then:

• A) The IRR is equal to the firm's required rate of return.
• B) The profitability index is greater than 1.
• C) The payback period is faster than the firm's required cutoff point.
• D) The AAR exceeds the IRR.
• E) The project does not pay back on a discounted payback basis.

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Definitions:

Ethylamine

A simple organic compound (C2H5NH2) characterized by an ethyl group attached to an amine group, used in chemical synthesis.

Acid Catalysis

A process where an acid is used to accelerate a chemical reaction, often by increasing the concentration of hydrogen ions in the reaction environment.

Organic Product

A compound or substance that has been derived from living organisms and contains carbon.

Base

A substance that can accept hydrogen ions (protons) or more generally, donate a pair of valence electrons; in water, it increases the concentration of hydroxide ions (OH-).