Assume a Project Has Normal Cash Flows

question 15

Multiple Choice

Assume a project has normal cash flows.Given this,you should accept the project

• A)if,and only if,the NPV is exactly equal to zero.
• B)only if the NPV is equal to the initial cash flow.
• C)if the NPV is positive and reject it if the NPV is negative.
• D)if the total cash inflows exceed the initial cash outflow.
• E)because it has positive cash flows for every time period after the initial investment.

---

Definitions:

New York

A state in the northeastern U.S., known for New York City, a major cultural, financial, and commercial center, as well as other notable regions like the Adirondacks and the Finger Lakes.

1930s

A decade during which the world experienced the Great Depression, characterized by significant economic hardship, high unemployment, and major shifts in economic policies.

Quantity Controls

Government-imposed limits on the amount of a good that can be produced or sold within a market.

Price Ceilings

A legally established maximum price for goods or services, aimed at preventing prices from rising too high.