If the NPV for a Project Is Positive It Must

question 105

Multiple Choice

If the NPV for a project is positive it must be that

• A) the discounted payback period is longer than the useful life of the project.
• B) the internal rate of return is lower than the discount used.
• C) the project is not acceptable on a risk adjusted basis.
• D) this project is preferred to any other mutually exclusive project.
• E) accepting the project increases the value of the firm.

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Definitions:

Used-Car Fraud

Deceptive practices associated with the buying and selling of pre-owned vehicles.

Do Not Call Registry

A list or database managed by a regulatory authority where individuals can add their phone numbers to avoid unsolicited marketing calls.

FTC

The Federal Trade Commission, a U.S. federal agency responsible for protecting consumers and competition by preventing anticompetitive, deceptive, and unfair business practices.

NAFTA

The North American Free Trade Agreement, a treaty among the United States, Canada, and Mexico to eliminate tariffs and facilitate trade among the three countries.