A Project Should Be Accepted When The

question 115

Multiple Choice

A project should be accepted when the:

• A) Profitability index is less than 1.0.
• B) AAR is less than the targeted AAR.
• C) Net present value is negative.
• D) IRR exceeds the required rate.
• E) Payback period is greater than the prescribed number of years.

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Definitions:

Executive Education Programs

Specialized training courses designed to enhance the knowledge and skills of business leaders and managers.

College Extension Departments

Units within colleges or universities that offer courses and educational programs to non-traditional students, such as working adults and community members.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of a business venture in the hope of making a profit.

Start-Up Process Model

A framework outlining the steps or phases involved in launching a new business, from conception to market entry.