According to the NPV Rule,all Projects Should Be Accepted If

question 70

Multiple Choice

According to the NPV rule,all projects should be accepted if NPV is positive when discounted at the:

• A) internal rate of return.
• B) opportunity cost of capital.
• C) risk-free interest rate.
• D) accounting rate of return.

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Definitions:

Present Values

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Time Lines

Schedules or timelines outlining the sequence and duration of tasks or events.

Cash Flows

The sum of funds flowing in and out of a company, particularly influencing its ability to cover short-term obligations.

Annuities

Financial products that pay out a fixed stream of payments to an individual, typically used as a retirement strategy.