When a Project's Net Present Value (NPV) Exceeds Zero, Then

question 145

Multiple Choice

When a project's net present value (NPV) exceeds zero, then:

• A) the project should be accepted
• B) the project will be acceptable using the payback period method
• C) the IRR should be calculated to ensure that the project's IRR exceeds the cost of capital
• D) the payback period is always less than one year

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Definitions:

Ethical Universalism

The philosophical view that certain ethical standards are universally applicable to all individuals, regardless of culture, race, sex, religion, nationality, sexuality, or any other distinguishing feature.

Cultural Relativism

The principle that an individual's beliefs and activities should be understood by others in terms of that individual's own culture, emphasizing the idea that there is no absolute standard of right or wrong across cultures.

Results-Oriented

A focus on achieving specific goals and outcomes, emphasizing performance and accomplishment of targets.