When a Project's NPV Exceeds Zero

question 46

Multiple Choice

When a project's NPV exceeds zero,

• A) The project will also be acceptable using payback criteria.
• B) The IRR should be calculated to insure that the project's projected rate of return exceeds the required rate of return.
• C) The project should be accepted without any further consideration,assuming we are confident that the cash flows and the required rate of return have been properly estimated.
• D) Only answers a and c are correct.
• E) None of the above is correct.

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Definitions:

Affection

A gentle feeling of fondness or liking towards someone or something, often displayed through physical or verbal expressions.

Authoritative

Commanding and self-assured; used to describe someone or something that is recognized as being in control or an expert.

Indulgent

Characterized by yielding to the desire to satisfy one's own needs or wishes; often associated with leniency or permissiveness.

Hot

Subjectively experienced or described as having a high temperature or giving off heat.