If the Net Present Value (NPV) of an Investment Proposal

question 97

Multiple Choice

If the net present value (NPV) of an investment proposal is positive, it would indicate that the:

• A) PV of after-tax cash outflows exceeds the PV of after-tax cash inflows.
• B) Payback period is less than one-half the life of the project.
• C) Internal rate of return (IRR) is equal to the discount percentage used in the NPV calculation.
• D) PV index would be less than 100%.
• E) Internal rate of return (IRR) for this project is greater than the discount rate used in the NPV computation.

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Definitions:

Nucleotide

The basic building block of nucleic acids, such as DNA and RNA, consisting of a sugar, a phosphate group, and a nitrogenous base.

DNA Molecule

The carrier of genetic information in living organisms and viruses, composed of two long strands of nucleotides twisted into a double helix.

Chicken Eggs

Eggs produced by chickens, commonly consumed as food by humans.

Nucleus

The organelle in a cell that houses the DNA and is responsible for controlling the cell's growth, metabolism, and reproduction.