Which of the Following Statements Is Correct for a Project

question 64

Multiple Choice

Which of the following statements is correct for a project with a positive NPV?

• A)IRR exceeds the cost of capital.
• B)Accepting the project has an indeterminate effect on shareholders.
• C)The discount rate exceeds the cost of capital.
• D)The profitability index equals one.

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Definitions:

Seriation

Seriation is a cognitive skill that involves organizing objects in a sequential order based on a particular attribute, such as size or color.

Reversibility

In cognitive development, the understanding that objects can be changed and then returned to their original condition or state.

Moral Development

The process through which individuals develop proper attitudes and behaviors toward other people in society, based on social and cultural norms, rules, and laws.

Pre-Conventional

A stage in Kohlberg's theory of moral development where moral understanding is based on rewards and punishments.