Which One of the Following Statements Is Correct? Assume Cash

question 98

Multiple Choice

Which one of the following statements is correct? Assume cash flows are conventional.

• A)If the IRR exceeds the required return, the profitability index will be less than 1.0.
• B)The profitability index will be greater than 1.0 when the net present value is negative.
• C)When the internal rate of return is greater than the required return, the net present value is positive.
• D)Projects with conventional cash flows have multiple internal rates of return.
• E)If two projects are mutually exclusive, you should select the project with the shortest payback period.

Comprehend the impact of the Federal Reserve’s actions in historical banking crises.

Distinguish between different types of banking regulations and their purposes.

Analyze the effects of banking deregulation and its consequences on the banking system.

Understand the concept and implications of moral hazard in the banking sector.