Projects with a Negative Net Present Value Will Always Have

question 76

Multiple Choice

Projects with a negative net present value will always have a(n)

• A)payback period shorter than the life of the project.
• B)accounting rate of return that is greater than zero.
• C)an internal rate of return greater than the cost of capital.
• D)None of these answer choices are correct.

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Definitions:

Prohibitively Expensive

Costs that are so high they discourage or prevent an individual or entity from purchasing a service or product or undertaking an action.

Impossibility of Performance

A legal doctrine that releases parties from their contractual obligations when an event occurs that makes performance objectively impossible.

Absconded

To leave hurriedly and secretly, typically to escape from custody or avoid arrest.

Digestive Problem

Health issues related to the digestive system that impair its ability to function properly.