If the Required Return Is Zero, Then

question 246

Multiple Choice

If the required return is zero, then:

• A) The payback period exceeds the discounted payback period.
• B) The NPV equals the difference between the undiscounted future cash flows and the initial cost.
• C) If the NPV is negative, the IRR will be greater than zero.
• D) The PI will be less than one.
• E) The project will be acceptable according to the AAR criteria.

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Definitions:

Phobias

Intense, irrational fears of specific objects or situations that significantly interfere with an individual's daily life.

Obsessive-Compulsive Disorder

A mental health disorder characterized by recurring, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) as a way to cope with anxiety.

Obsessions

Persistent, unwanted thoughts, images, or impulses that invade an individual's consciousness, often causing significant anxiety or distress.

Compulsions

Repetitive behaviors or mental acts that an individual feels driven to perform in response to an obsession or according to rules that must be applied rigidly.