Which of the Following Is Incorrect for a Borrowing Project

question 2

Multiple Choice

Which of the following is incorrect for a borrowing project?

• A)its NPV graph rises as discount rates increase.
• B)its cash flow at time zero is typically an inflow.
• C)its NPV is positive.
• D)it's acceptable if IRR exceeds cost of capital.

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Definitions:

Permeability

A measurement of a material’s ability to conduct magnetic lines of flux. The standard is air, which has a permeability of 1.

Reluctance

Resistance to magnetism.

Resistance

A measure of an object's opposition to the flow of electric current, resulting in electrical energy being dissipated as heat.

Material's

Pertaining to the substance or substances from which something is or can be made, often highlighting properties or characteristics.