If the Net Present Value of a Project Is Positive

question 45

Multiple Choice

If the net present value of a project is positive then the:

• A)project would be unacceptable under the internal rate of return method.
• B)project would be acceptable under the payback method.
• C)project's rate of return is greater than the firm's cost of capital.
• D)All of the above are correct.

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Definitions:

Advertising Budget

The allocation of funds dedicated to marketing communication and promotional activities over a specific time period.

Informational Appeal

Advertising or communication strategies that focus on providing factual information or logical arguments to persuade consumers.

Emotional Appeal

A persuasive technique used in advertising and marketing to create an emotional response in the audience, aiming to influence their purchasing decisions.

Utilitarian Needs

The practical or functional aspects that consumers consider when purchasing a product, focusing on the utility and efficiency it provides.