Which One of the Following Statements Is Correct for a Project

question 60

Multiple Choice

Which one of the following statements is correct for a project with a positive NPV?

• A) The IRR must be greater than 0.
• B) Accepting the project has an indeterminate effect on shareholders.
• C) The discount rate exceeds the cost of capital.
• D) The profitability index equals 1.

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Definitions:

Information Resources

Information Resources encompass data, information systems, libraries, and other mediums that provide essential knowledge and facts for research, decision-making, or educational purposes.

Wider Authority

An increase in the range or scope of control and decision-making power granted to an individual or organization.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Assembly Lines

A manufacturing process in which parts are added to a product in a sequential manner to create a finished product efficiently.