Assume a Project Has Normal Cash Flows

question 33

Multiple Choice

Assume a project has normal cash flows.Given this,you should accept the project

• A)if,and only if,the NPV is exactly equal to zero.
• B)only if the NPV is equal to the initial cash flow.
• C)if the NPV is positive and reject it if the NPV is negative.
• D)if the total cash inflows exceed the initial cash outflow.
• E)because it has positive cash flows for every time period after the initial investment.

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Definitions:

Vertically

In a direction or way that aligns or relates to the top and bottom or head and foot, typically in reference to genetics, to indicate transmission of traits from parent to offspring.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Sucrose

A disaccharide sugar composed of glucose and fructose, commonly known as table sugar and found naturally in plants.

Translocated

The process of moving or transferring something from one location to another, often referring to the movement of genetic material within or between organisms.