According to the NPV Rule, All Projects Should Be Accepted

question 114

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

---

Definitions:

Lower Bound

The minimum value that a mathematical function, financial security, or market variable can have.

Call's Value

Represents the price of an option to buy a particular stock or asset at a set price within a specific time frame.

ESOs

Employee Stock Options; the right granted to employees to buy a set amount of company shares at a fixed price.

Job Leaving

This refers to the act of an employee voluntarily terminating their employment with a company.