According to the NPV Rule,all Projects Should Be Accepted If

question 70

Multiple Choice

According to the NPV rule,all projects should be accepted if NPV is positive when discounted at the:

• A) internal rate of return.
• B) opportunity cost of capital.
• C) risk-free interest rate.
• D) accounting rate of return.

---

Definitions:

Discounts

Reductions from the usual cost of goods or services, often provided as a promotion or reward.

Warranties

Legally binding guarantees provided by a manufacturer or seller to a buyer, assuring the product will meet specified standards of performance and quality.

Long-Term Customer Relationships

Building enduring connections with customers, focusing on loyalty and repeated business through ongoing satisfaction and engagement.

Financial Rewards

Benefits given in the form of money, such as salaries, bonuses, or commissions, as compensation for employment or achieving specific goals.