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:

Titchener

Edward Titchener was a British psychologist known for developing structuralism, an early school of psychology focused on breaking down mental processes into the most basic components.

Behaviorism

An approach in psychology that emphasizes the importance of external behavior rather than internal processes and posits that behavior can be studied scientifically without recourse to inner mental states.

Psychodynamic Psychology

A branch of psychology that emphasizes the systemic study of the psychological forces that underlie human behaviour, feelings, and emotions and how they might relate to early experience.

Gestalt Psychology

A school of thought that emphasizes looking at the whole of anything, including perception and human behavior, rather than its parts.