If the NPV of a Project Is Positive, It Means

question 29

Multiple Choice

If the NPV of a project is positive, it means that:

• A) the project's discounted payback period is longer than the useful life of the project.
• B) the internal rate of return is lower than the discount rate used.
• C) the project is not acceptable on a risk adjusted basis.
• D) the project's discounted payback period is less than its payback period.
• E) accepting the project increases the value of the firm.

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Definitions:

Interaction

The process by which two or more entities communicate or affect each other in some way.

Cooperation

Cooperation is the process of groups or individuals working together towards a common goal, often resulting in mutual benefits or achieving shared objectives.

Compliance Conformity

Adjusting one's behavior or beliefs to match those of others, often in response to explicit or implicit social pressure.

Personal Acceptance Conformity

Refers to the process where individuals adapt their attitudes, beliefs, or behaviors to align with those of a group or society as a whole, often to gain acceptance or approval.