If a Project's Net Present Value (NPV) Is Positive

question 1

Multiple Choice

If a project's net present value (NPV) is positive,:

• A)its internal rate of return (IRR) is equal to the firm's required rate of return.
• B)it is not an acceptable project.
• C)it is an acceptable investment.
• D)the firm's required rate of return is not attainable.
• E)its payback period is greater than the maximum cost-recovery time established by the firm.

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