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:

Statistically Significant

Indicating that the probability of an observed difference or relationship occurring by chance is low, typically below a predefined threshold of significance.

Random Chance

The occurrence of events without any predictable order or pattern, often used to describe outcomes in statistical events or experiments.

Likert Scale

A psychometric scale commonly involved in research that employs questionnaires, used to represent people's attitudes, opinions, or perceptions quantitatively.

Personality Questionnaire

A psychological assessment tool used to evaluate the personality traits and characteristics of an individual.