Which of the Following Statements Is True of a Project

question 57

Multiple Choice

Which of the following statements is true of a project with a positive net present value (NPV) ?

• A) The project's internal rate of return is less than the expected rate of return.
• B) The project has multiple internal rates of return.
• C) The project's terminal value is less than the future value of the initial investment in the project.
• D) The project's initial investment is recovered on a present value basis prior to the end of the project's useful life.
• E) The present value of project's cash inflows and multiple cash outflows discounted at internal rate of return are equal.

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Definitions:

High Sensitivity

The capability of an assessment to accurately detect individuals who have the disease (true positive rate).

Low Specificity

A characteristic of a diagnostic test that indicates a high likelihood of false positives, meaning it often indicates a disease or condition is present when it is not.

Sensitivity

The ability of a test to correctly identify those with the disease (true positive rate).

Process Consultant

A professional who assists organizations in understanding and improving their internal processes and interactions for better efficiency and communication.