Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A)Longer-term projects must offer higher expected rates of return, which translate into higher NPVs.
• B)Short-term projects usually have lower costs of capital than long-term projects.
• C)Because shorter-term borrowing is cheaper than long-term borrowing, short-term projects are more likely to be positive NPV projects.
• D)All of the above are true statements.

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