The Following Statements Regarding the NPV Rule and the Rate

question 78

Multiple Choice

The following statements regarding the NPV rule and the rate of return rule are true except:

• A) Accept a project if its NPV > 0
• B) Reject a project if the NPV < 0
• C) Accept a project if its rate of return > 0
• D) Accept a project if its rate of return > opportunity cost of capital

---

Definitions:

Pheromones

Chemical substances produced and released into the environment by an animal, affecting the behavior or physiology of others of its species.

Extrinsic Eye Muscles

The six muscles that control the movement of the eye and the eyelid, allowing for complex movements and adjustments in vision.

Ciliary Muscle Activity

The contraction and relaxation of the ciliary muscle, which helps in controlling the lens shape for focusing on objects at varying distances.

Membranous Labyrinth

A complex system of fluid-filled tubes and sacs found within the inner ear, important for hearing and balance.