Which of the Following Statements Is Correct for a Project

question 64

Multiple Choice

Which of the following statements is correct for a project with a positive NPV?

• A)IRR exceeds the cost of capital.
• B)Accepting the project has an indeterminate effect on shareholders.
• C)The discount rate exceeds the cost of capital.
• D)The profitability index equals one.

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Definitions:

Key Advantages

Fundamental benefits or positive aspects that distinguish a concept, method, or entity from others, providing it with competitive advantages.

Controlling Behavior

Actions designed to dominate or dictate the actions, thoughts, or feelings of others through authority or manipulation.

Human Capital Value

The way employees work toward the strategic goals of an organization to achieve competitive advantage.

Strategic Goals

Long-term objectives set by an organization, which guide its direction and strategic planning to achieve desired outcomes and fulfill its mission.