Assume a Project Has Normal Cash Flows and a Positive

question 17

Multiple Choice

Assume a project has normal cash flows and a positive (non-zero) net present value.The project's

• A)profitability index will be less than 1.
• B)internal rate of return will exceed its required rate of return.
• C)costs exceed its benefits.
• D)discounted payback period will exceed the life of the project.
• E)payback period must equal the life of the project.

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Definitions:

Teenagers

Youth in the age range from 13 to 19 years, characterized by significant physical, psychological, and social development.

Unemployment Rates

The fraction of the whole employment population that lacks a job, however, is actively hunting for one and eager to work.

Prime Working Age

The age range, typically 25 to 54 years, considered most productive and economically active in the workforce.

Natural Rate

A term often used in economics to describe the level of output or unemployment that the economy tends toward in the long run, unaffected by short-term fluctuations.