When the Present Value of the Cash Inflows Exceeds the Initial

question 60

Multiple Choice

When the present value of the cash inflows exceeds the initial cost of a project,then the project should be:

• A)accepted because the internal rate of return is positive.
• B)accepted because the profitability index is greater than 1.
• C)accepted because the profitability index is negative.
• D)rejected because the internal rate of return is negative.
• E)rejected because the net present value is negative.

---

Definitions:

King Cotton Diplomacy

The Confederate strategy during the American Civil War to withhold cotton exports to coerce Britain and France into recognizing the Confederacy.

First Geneva Convention

A treaty signed in 1864 aiming to ensure the care of the wounded in wartime on land, establishing humanitarian rules of war.

Clara Barton

Known as the founder of the American Red Cross, she was a pioneering nurse who provided care in the Civil War and was instrumental in improving the medical care system.

Endorse

To publicly or officially support a candidate, policy, or product.