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:

FTP

File Transfer Protocol, a standard network protocol used to transfer files from one host to another over a TCP-based network, such as the Internet.

IPv6

Internet Protocol version 6, the most recent version of the Internet Protocol (IP), designed to address the limitations of IPv4, including a much larger pool of IP addresses.

Multipurpose Internet Mail Extensions

A standard that extends the format of email messages to support text in various character sets, and attachments of audio, video, images, and application programs.

Packet Switching

A communications methodology that makes computer communication efficient by breaking up data into smaller chunks called packets.