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.

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Definitions:

Liabilities

Liabilities are financial obligations or debts that a company owes to others, including loans, accounts payable, mortgages, and other forms of owed money.

Installment Note

A debt instrument that requires regular payments of principal and interest over a set period.

Fiscal Year

A 12-month cycle utilized by corporations and governmental bodies for the purposes of financial statements and budget planning, not always coinciding with the January to December calendar year.

Principal Repayment

The process of paying back the original amount of money borrowed, excluding interest or other charges.