The Acceptance of an Investment Project Implies That: Its IRR

question 21

Multiple Choice

The acceptance of an investment project implies that: Its IRR is greater than 15 percent.
Its NPV is greater than its IRR.
Its NPV is greater than 0.

• A)1
• B)2
• C)3
• D)Both 2 and 3

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Definitions:

Rated Frequency

The specific frequency at which an electrical device or piece of equipment is designed to operate most effectively and efficiently.

Constant Horsepower

A motor characteristic where horsepower remains constant across varying speeds.

Rectifier

A device that converts alternating current (AC) to direct current (DC).

Converter

A device that changes electrical energy from one form to another, such as AC to DC or vice versa.