If the Net Present Value of an Investment Project Is

question 94

Multiple Choice

If the net present value of an investment 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 these are correct

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Definitions:

Total Utility

Total contentment experienced through the use of a particular volume of goods or services.

Social Security System

The federal system of social insurance programs. It includes three separate programs that are financed through separate funds: the Old Age and Survivors Insurance (OASI) program, the Disability Insurance (DI) program, and the Health Insurance (HI), or Medicare program.

Tax Receipts

Government income due to taxation.

Federal Government

The national government of a federal country, which holds authority over matters that affect the entire country.