If a Capital Budgeting Project Has a Negative Net Present

question 25

Multiple Choice

If a capital budgeting project has a negative net present value (NPV) ,

• A)its internal rate of return (IRR) is also negative.
• B)its discounted payback period (DPB) is greater than the project's economic life.
• C)the firm should invest in the project as long as the initial investment outlay is low.
• D)its traditional payback period (PB) is greater than the firm's expected payback period.
• E)its internal rate of return (IRR) is greater than the discount rate that would be used to compute the project's NPV.

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Definitions:

Reaction Speed

The rate at which reactants are converted to products in a chemical reaction.

Heated Reactions

Chemical reactions that require the addition of heat energy to proceed or to increase the rate of the reaction.

Temperature Dependence

Describes how the properties of substances change as the temperature changes, affecting reactions, phases, and physical properties.

Insect Activity

The behavioral patterns and physical actions of insects, including feeding, reproduction, and movement.