Which of the Following Is Incorrect for a Borrowing Project

question 2

Multiple Choice

Which of the following is incorrect for a borrowing project?

• A)its NPV graph rises as discount rates increase.
• B)its cash flow at time zero is typically an inflow.
• C)its NPV is positive.
• D)it's acceptable if IRR exceeds cost of capital.

---

Definitions:

Shareholders Rights

Legal entitlements that allow shareholders to have a say in the corporation's management, actions, and decisions, typically through voting rights and the ability to sue for wrongful acts.

Voting Power

The ability or right of an individual or group to cast a vote in an election or decision-making process.

Transfer Ownership

The act of transferring the rights, title, and interest in property or assets from one party to another, usually through sale, gift, or inheritance.

Dividends

A share of profits distributed by a corporation to its shareholders, typically made as a fixed payment per share of stock.