Which of the Following Can Be Deduced About a Three-Year

question 129

Multiple Choice

Which of the following can be deduced about a three-year investment project that has a two-year payback period?

• A)The NPV is positive
• B)The IRR is greater than the cost of capital
• C)Both 'a' and 'b' can be deduced
• D)Neither 'a' nor 'b' can be deduced

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Definitions:

Multinational Corporation

A company that operates in multiple countries, managing production or delivering services in more than one country.

Labor Cost

The total expense incurred by employing labor, including wages, salaries, and benefits.

Private Enterprise System

A private enterprise system is an economic system where private individuals or businesses own and operate the means of production and distribution of goods and services.

Fair Competition

refers to a marketplace where businesses operate under rules that prevent monopolies and ensure equal opportunities for all participants.