When a Project's Net Present Value Exceeds Zero, Then

question 91

Multiple Choice

When a project's net present value exceeds zero, then:

• A)the project should be accepted
• B)the project will be acceptable using the payback period method
• C)the IRR should be calculated to ensure that the project's IRR exceeds the cost of capital
• D)both a and c are true

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Definitions:

90-Day Note

A short-term debt security that matures in 90 days, typically used in the financing of inventory, accounts receivable, or other short-term needs.

Note Receivable

Note Receivable is a financial asset representing a written promise to receive a specific amount of money from another party on a determined future date or dates.

Credit Sales

Sales transactions where the payment is delayed as per agreed terms between the seller and the buyer.

Retail Store Credit Card

A credit card issued by a retail store allowing customers to purchase goods on credit from that specific retailer.