If a Project Is Assigned a Required Rate of Return

question 74

Multiple Choice

If a project is assigned a required rate of return equal to zero,then:

• A)the project will always be rejected.
• B)the project will always be accepted.
• C)the timing of the project's cash flows has no bearing on the value of the project.
• D)whether the project is accepted or rejected will depend on the timing of the cash flows.
• E)the project can never add value for the shareholders.

---

Definitions:

Involving Others

The act of engaging additional individuals in activities or decision-making processes to leverage diverse perspectives and expertise.

Planning Process

A systematic series of steps taken to achieve a specific aim, including goal setting, strategy development, and resource allocation.

Benchmarking

The practice of comparing business processes and performance metrics to industry bests and best practices from other companies.

External Comparisons

The act of evaluating one's performance, practices, or characteristics by measuring them against those of other entities or benchmarks.