If a Project's Net Benefit Computed on a Present Value

question 42

Multiple Choice

If a project's net benefit computed on a present value basis-that is, NPV-is positive, then:

• A) its internal rate of return is equal to the required rate of return.
• B) it is considered a risk-free project.
• C) it is considered an acceptable investment.
• D) the required rate of return is not attainable.
• E) its payback period is more than the maximum cost-recovery time established by the firm.

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Definitions:

Competitive Strategies

Approaches and tactics employed by businesses to gain an advantage over competitors, improve market position, and achieve organizational goals.

Experimentally Designed Games

Games created under controlled conditions to study behaviors, learning, or psychological phenomena.

Allocentric

Refers to a viewpoint that focuses on the needs, values, and priorities of others over oneself.

Social Repair Mechanisms

Strategies that allow friends to remain friends even when serious differences temporarily drive them apart.