A Project Should Be Accepted If _____

question 59

Multiple Choice

A project should be accepted if _____.

• A) its payback period is more than the expected number of years to recover the original investment
• B) its internal rate of return (IRR) exceeds the required rate of return
• C) it yields multiple internal rates of return
• D) it involves multiple cash inflows and cash outflows during the life of the project
• E) its undiscounted cash flows are more than the discounted cash flows

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Definitions:

Rated Horsepower

A measure of a motor's output power capability under standardized conditions, as specified by the manufacturer.

Continuous Basis

A term describing operations or conditions that are maintained constantly without interruption over a long period.

Rated Frequency

The specific frequency, often in hertz (Hz), at which an electrical device is designed to operate under its standard conditions.

Electrical Insulation

Materials or systems used to prevent the unwanted flow of electric current, ensuring safety and proper functioning of electrical circuits.