Which of the Following Projects Would You Feel Safest in Accepting

question 126

Multiple Choice

Which of the following projects would you feel safest in accepting? Assume the opportunity cost of capital to be 12 percent for each project.

• A)"A" has a small, but negative, NPV
• B)"B" has a positive NPV when discounted at 10 percent
• C)"C's" cost of capital exceeds its rate of return
• D)"D" has a zero NPV when discounted at 14 percent

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