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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