Assume a Project Has Normal Cash Flows and a Positive

question 48

Multiple Choice

Assume a project has normal cash flows and a positive (non-zero) net present value.The project's

• A)profitability index will be less than 1.
• B)internal rate of return will exceed its required rate of return.
• C)costs exceed its benefits.
• D)discounted payback period will exceed the life of the project.
• E)payback period must equal the life of the project.

---

Definitions:

Allison TC10

A fully automatic transmission designed by Allison for tractor-trailers, combining the efficiency of manual transmissions with the convenience of automatics.

ECPC Valves

Electronic Control Pressure Compound valves, used in hydraulic systems for precise fluid control in various industrial applications.

PWM Controlled

Pertains to a system or device that is regulated using Pulse Width Modulation, a technique used to control power delivery efficiency and precision.