As Long as the NPV of a Project Declines Smoothly

question 70

Multiple Choice

As long as the NPV of a project declines smoothly with increases in the discount rate, the project is acceptable if its:

• A)Internal rate of return is positive
• B)Net present value does not equal zero
• C)Rate of return exceeds the cost of capital
• D)Cash inflows exceed the initial cost

---

Definitions:

House Prices

The prices at which individual houses are bought and sold in the real estate market.

Number Of Rooms

Typically refers to the count of rooms in a building or designated space, often used in real estate and accommodation descriptions.

Variation

The differences or changes in data or characteristics within a sample or population.

Increase

A rise in magnitude, quantity, or degree; an upward trend in a numerical value or variable.