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:

Oxygen

A chemical element (O) that is critical for respiration in most aerobic organisms and has various industrial uses.

Nutrients

Substances obtained from food and beverages that are essential for growth, metabolism, and for maintaining life.

Arterioles

Small branches of arteries leading to capillaries that regulate blood flow and pressure in the circulatory system.

Arterial Wall

The layered structure of an artery, consisting of connective tissue, smooth muscle, and endothelial cells, which maintain blood pressure and circulation.