Projects with Smaller Initial Investments May Have Higher PIs and IRRs

question 128

True/False

Projects with smaller initial investments may have higher PIs and IRRs, but their small size may appear to make them less attractive from an NPV perspective.

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Definitions:

Requisite Intent

The necessary state of mind or intention required by law for a person to be held legally responsible for his/her actions.

Contract

A legally-binding agreement between two or more parties that outlines obligations and benefits for each party.

Acceptance

An act signifying agreement to the terms of an offer, thus creating a binding contract.

Terminate

To bring something to an end or halt its operations or effectiveness.