As Long as the NPV of a Project Declines Smoothly

question 125

Multiple Choice

As long as the NPV of a project declines smoothly with increases in the discount rate, the project is acceptable if its:

• A)internal rate of return is positive.
• B)net present value does not equal zero.
• C)rate of return exceeds the cost of capital.
• D)cash inflows exceed the initial cost.