Given a Particular Set of Project Cash Flows, Which of the Following

question 40

Multiple Choice

Given a particular set of project cash flows, which of the following statements is correct?

• A)there can be only one NPV for the project.
• B)there can be only one IRR for the project.
• C)there can be more than one NPV for the project.
• D)there can be only one profitability index for the project.

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Definitions:

Product-line Extensions

The introduction of new products to an existing product line, usually related to the current products but targeted to meet different customer needs or preferences.

Sales of Existing

Transactions involving goods or assets that are not new but have been previously owned or used.

Product Line

A group of related products marketed by the same firm.

Canned Soups

Pre-cooked soups that are packaged in cans for convenience, long shelf life, and ease of preparation.