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:

Panic Disorder

An anxiety disorder characterized by sudden periods of intense fear or discomfort accompanied by physical symptoms such as palpitations, sweating, and feelings of doom.

Genetic Predisposition

An increased likelihood of developing a particular disease based on a person's genetic makeup.

Bodily Sensation

Bodily sensation refers to any subjective feeling or experience of the body, including pain, temperature, touch, and internal physiological changes.

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, often disconnected from reality.