If the Net Present Value for a Project Is Positive

question 49

Multiple Choice

If the net present value for a project is positive, which of the following is true?

• A) the project should be accepted because its expected rate of return is greater than the cost of capital
• B) its internal rate of return is more than its cost of capital
• C) its expected rate of return is below the required rate of return
• D) its internal rate of return is less than its cost of capital

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