If the NPV Form a Project Is Positive It Must

question 19

Multiple Choice

If the NPV form a project is positive it must be that

• A)the discounted payback period is longer than the useful life of the project.
• B)the internal rate of return is lower than the discount used.
• C)the project is not acceptable on a risk adjusted basis.
• D)this project is preferred to any other mutually exclusive project.
• E)accepting the project increases the value of the firm.

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Definitions:

Upper GI Series

A type of medical imaging that examines the upper part of the gastrointestinal tract.

Radiologist

One who diagnoses and treats disease by the use of radiant energy.

Fluoroscope

A device consisting of a fluorescent screen in conjunction with an X-ray tube to make visible shadows of objects interposed between the screen and the tube.

Mammogram

An X-ray of the breast.